Understanding SUI's Emission Schedule and Staking Dynamics

Understanding SUI's Emission Schedule and Staking Dynamics
Understanding SUI's Emission Schedule and Staking Dynamics

Dive into the world of SUI tokens, staking, and emission schedules. Understand the impact of stake rewards on circulating supply in this article.

As we already know, the SUI token stands out with a finite supply of 10 billion tokens. Yet, not all these tokens are immediately in circulation. As the Sui ecosystem evolves, new tokens unlock to reward early supporters, sustain network operations, and empower Sui builders, developers, and community members. We will dive into the details of SUI's circulating supply, publicly accessible through the API, for a closer examination.

At the core of Sui's functionality lies a Proof-of-Stake security model, wherein SUI token holders stake their tokens to delegate voting power to network operators. In return, stakers receive stake rewards, drawing from two primary sources: stake subsidies and gas fees.

It's crucial to emphasize that the unstaking, withdrawal, and utilization of stake rewards don't alter the circulating supply. The reason is straightforward—stake rewards, originating from stake subsidies and gas fees, are already in circulation when distributed. This distinction is pivotal to understanding the dynamics of SUI's emission schedule.

Stake subsidies, released at the end of each epoch (approximately every 24 hours), contribute to SUI's emission schedule. Consequently, when these subsidies are paid to stakers, there's an uptick in the circulating supply. However, once stakers receive these subsidies as stake rewards, the tokens are already counted within the circulating supply. Therefore, unstaking these rewards for other purposes doesn't impact the circulating supply.

Similarly, gas fees, tokens paid by users for on-chain transactions, are already in circulation. When stakers receive gas fees as stake rewards, these tokens are part of the existing circulating supply. In essence, the withdrawal or utilization of stake rewards holds no sway over SUI's circulating supply, as these tokens are already in circulation upon reaching a staker's wallet.

Since its launch on May 3, 2023, the Sui Mainnet has seen the release of 179 million SUI tokens through stake subsidies, with an additional 0.9 million SUI collected as gas fees from on-chain transactions. In total, as of the date of publication, the network has distributed 179.9 million SUI in the form of stake rewards to dedicated SUI stakers.

The emission schedule for SUI outlines the gradual increase in token supply up to the year 2030, capped at a maximum of 10 billion tokens. It's crucial to highlight that the withdrawal of stake rewards has no impact on the emissions schedule since these tokens are already part of the circulating supply once they reach a staker's wallet.

A pivotal aspect of SUI's emission schedule is the Community Reserve, safeguarded by the Sui Foundation. This reserve plays a crucial role in supporting the Sui community through grants, awards, and ecosystem partnerships. The Community Reserve, in itself, earns staking rewards, which are then channeled back into the community through various programs. Importantly, these activities do not disrupt the original token release schedule, as the stake rewards are already in circulation, merely redirected to fortify the Sui community.

In conclusion, this detailed exploration clarifies the non-impact of stake rewards on circulating supply, offering a comprehensive understanding of SUI's emission schedule and the symbiotic relationship between staking dynamics and community support initiatives.

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