Question: Are Sui and SUI the same thing?

Answer: Sui is the network/blockchain (L1), while SUI is the network’s native token, used for fees, staking, and other economic functions.

Question: What do fees on Sui consist of?

Answer: Sui’s model accounts for computation and data storage: users pay storage upfront, and when data is deleted a partial storage rebate may apply. Part of the fees support the Storage Fund.

Question: Is SUI issuance capped?

Answer: Yes, the long-term cap is 10 billion SUI. However, not all of it is available at once: supply enters circulation according to a release/vesting schedule.

Question: How does SUI staking work?

Answer: The network uses Delegated Proof-of-Stake (DPoS): holders can delegate SUI to validators. Validators earn rewards (including from fees), and delegators receive a share according to protocol/wallet rules.

What is Sui (SUI)

Sui (SUI) is a high-performance Layer-1 (L1) blockchain by Mysten Labs, focused on low latency and parallel execution of transactions.

Launch 03.05.2023 Sui Mainnet

Who created it

Mysten Labs (a team of former Meta/Diem engineers; key co-founders: Evan Cheng, Sam Blackshear, Adeniyi Abiodun, Kostas Chalkias, George Danezis).

Why it was created

To build a scalable L1 platform for Web3 applications, with an emphasis on fast confirmations, high throughput, and an “asset/object-centric” data model.

How it’s used

Paying fees for transactions and operations on the network
Paying storage fees (Storage Fund model; part may be returned as a rebate when data is deleted)
Staking/delegating SUI to validators to participate in DPoS and earn rewards
Using SUI as a liquid asset across ecosystem applications (DeFi, NFTs, games, etc.)

Risks

High market price volatility
Transaction irreversibility: an address/amount mistake can result in loss of funds
Unlock (vesting) and supply-pressure risk: a significant share of issuance enters circulation on a schedule; this can weigh on price around unlock dates. According to unlock trackers, the schedule extends for years (up to around 2030) and unlock events occur regularly
Governance centralisation and token-concentration risk: debates/claims about the share of “locked” tokens and the influence of large holders/insider allocations over staking and governance resurface periodically; even if estimates are disputed, concentration remains a risk factor
“Social layer”/intervention risk (governance intervention): in major incidents, validators/the community may take atypical measures (freezes, return/recovery plans), creating uncertainty about where the boundary of “immutability” lies and who effectively makes decisions

FAQ

Question: Are Sui and SUI the same thing?: Answer: Sui is the network/blockchain (L1), while SUI is the network’s native token, used for fees, staking, and other economic functions.
Question: What do fees on Sui consist of?: Answer: Sui’s model accounts for computation and data storage: users pay storage upfront, and when data is deleted a partial storage rebate may apply. Part of the fees support the Storage Fund.
Question: Is SUI issuance capped?: Answer: Yes, the long-term cap is 10 billion SUI. However, not all of it is available at once: supply enters circulation according to a release/vesting schedule.
Question: How does SUI staking work?: Answer: The network uses Delegated Proof-of-Stake (DPoS): holders can delegate SUI to validators. Validators earn rewards (including from fees), and delegators receive a share according to protocol/wallet rules.