Sui Foundation Injects 117 Million SUI Tokens to Boost Sui Network Growth
In a significant move that underscores its commitment to fueling the growth of the Sui Network, the Sui Foundation has announced the allocation of 117 million SUI tokens from external market makers. These tokens will be strategically directed towards various channels aimed at enhancing the Sui Network’s ecosystem. This groundbreaking Layer 1 blockchain, which launched its mainnet in May, has garnered widespread acclaim for its exceptional scalability and industry-leading throughput.
It is important to note that these tokens had been previously released, so their redistribution will not impact the circulating supply of SUI. In addition to this substantial allocation, the Sui Foundation has already earmarked 25 million SUI tokens for awarding the winners of its liquid staking hackathon, who were recently revealed on Tuesday, October 3rd.
The infusion of these repatriated resources into the Sui Network is expected to have a profound impact on its flourishing ecosystem. Among the key initiatives that will benefit from this allocation is the provision of grants to developers, enabling them to construct the next generation of decentralized applications on the Sui Network. Moreover, this funding will bolster the development of Sui’s state-of-the-art DeepBook CLOB, automated market makers, and liquid staking and lending protocols on the network.
📣Breaking news! We’re reallocating 117M SUI from external market makers and redirecting them to initiatives designed to fuel ecosystem and community growth!
— Sui (@SuiNetwork) October 5, 2023
Sui’s burgeoning DeFi ecosystem stands to be a major beneficiary of these new allocations. Recent data from leading DeFi TVL aggregator, DefiLlama, indicates that the network has achieved its highest Total Value Locked (TVL) ever, reaching approximately $37 million. This impressive milestone represents a growth of over 100% in just the past two months, and the new initiative seeks to capitalize on this early momentum.
The Sui Network’s remarkable achievements have been particularly noteworthy considering their rapid succession since the mainnet launch. In a span of just two months, the network executed an industry record of 65.8 million transactions in a single day, surpassing the performance of every other blockchain in history. Remarkably, the cost per transaction remained unaffected despite the concentrated traffic on the network. Furthermore, the network quickly expanded to encompass over 6 million active wallets in just over four months. Most recently, Sui unveiled zkLogin, an innovative feature native to the network that enables users to access decentralized applications using familiar Web 2.0 social accounts from providers such as Google, Facebook, and Twitch, enhancing both privacy and security.
Greg Siourounis, Managing Director of the Sui Foundation, expressed his excitement about the network’s accomplishments and the potential for future growth. He stated, “The milestones reached by Sui and its community in its first five months have been remarkable, but they represent only a fraction of what this network was built to achieve. Today’s reallocation represents a key influx of resources that will provide a new tailwind for Sui’s community of builders, developers, and ecosystem participants and fuel Sui’s ecosystem growth in the coming months and beyond.”
The Sui Network is a high-performance smart contract platform built on a Monolithic architecture. This blockchain boasts the ability to scale to several hundred thousand TPS (transactions processed per second) with block times ranging from 2 to 3 seconds. Less than a year ago, Mysten Labs (the company behind Sui) successfully raised 300 million USD, valuing the company at 2 billion USD.
Since the Layer 1 blockchain launched on the mainnet in May, the price of SUI has seen a significant decline, dropping from 1.40 USD to as low as 0.4 USD. The price of SUI has shown relatively low volatility in response to the news of the fundraising and is currently trading around 0.43 USD (according to CoinGecko).
- Sui Foundation Dismisses Rumors Of Staking Rewards Sale On Binance
- Japanese Social Game Giant GREE Partners With Mysten Labs (Sui) To Revolutionize Web3 Entertainment