Sui is a decentralized delegated Proof-of-Stake blockchain that enables horizontally scalable throughput with competitive speeds at low costs.The protocol uses Move, a programming language that focuses on security by using a modular architecture. The Move language allows parallel execution without adding additional complexity for node operators.
To keep pace with the cutting-edge infrastructure design, Sui implements a robust economic model that is designed to incentivize entities participating in the ecosystem. There are three main players in the Sui ecosystem:
Figment is currently a part of the permissioned testnet validator set and will continue to be a part of the Sui ecosystem upon the arrival of mainnet. The testnet aims to stabilize the network by running formulated tests to ensure the network is performing optimally. We are very excited to be a part of the Sui ecosystem and will be supporting the Mysten Labs team as the journey progresses. Mysten Labs is building the foundations for the decentralized future. Mysten Labs is a team of Web3 builders focused on laying the foundation for a decentralized future.
Stay tuned for our Staking Guide if you want to learn how to stake SUI. Meanwhile, you can reach out to firstname.lastname@example.org to learn more.
The Sui ecosystem consists of 5 vital components, each playing a interrelated role:
Sui utilizes the native token called SUI. This means that SUI will be used as the primary medium of exchange and a store of value. The max supply for SUI is capped at 10,000,000,000 (10bn) and a large portion of the total supply will be liquid when Mainnet launches. The remaining amount will vest over the coming years and be used to distribute future staking rewards. SUI will be used to participate in the PoS consensus through delegating and earning rewards. The token will also grant the delegator the right to vote or propose on-chain protocol upgrades via governance.
The diagram above shows the token distribution for the SUI token.
Sui’s gas fee structure is aimed to create a credible anchor for users to eliminate uncertainty when submitting transactions. Validators coordinate at the beginning of each epoch and set a reference price allowing users to have a credible citation mark when deciphering gas prices. By incentivizing validators who disclose their accurate reservation prices users can credibly presume that transactions will be processed in a punctual manner. The reference price is fixed for the duration of the epoch, however, users can “tip” or reduce the price as long as it is above the gas price floor, which is updated periodically depending on network activity. Therefore, the more validators on the network, the lower the price.
In order to offset costs of large amounts of on-chain data Sui uses a Storage fund. The fund is designed to redistribute storage fees collected over time. When submitting a transaction, users pay both the computation fee as well as the storage fee. The collected funds are distributed to new validators to combat the cost of large data storage.
There are 3 main features of the Storage fund:
The Storage fund reduces the barriers to entry into the Sui ecosystem and encourages new validators to join.
The Sui blockchain relies on a Delegated Proof-of-Stake mechanism (DPoS) which allows SUI token holders to delegate their tokens to any validator of choice. Total stake delegated to a validator is in direct relation to the validators voting power. Once delegated, SUI tokens are locked for the entire epoch and are free to change the delegated validator once the epoch changes.
In light of the PoS system, SUI holders who delegate their tokens to validators will earn rewards for securing the network. Rewards are distributed at the end of each epoch and are derived from transaction fees aka gas fees.
Prior to mainnet launch, Sui will run a private testnet consisting of three waves. Each wave will test a different functionality of the network. Sui has just recently launched the first wave of their Testnet. With each wave, more validators will be onboarded to eventually test the network at full capacity to prepare for mainnet. Upon mainnet Sui will launch with a delegated proof of stake mechanism which will allow users to stake their SUI tokens immediately. A diagram explaining the roadmap can be found below. Stay tuned for more updates.