The SUI Token
Sui’s native asset is called SUI and we generally use the capitalized version of SUI to distinguish the token from the Sui platform.
The total supply of SUI is capped at 10,000,000,000 (i.e. ten billion tokens). A share of SUI’s total supply will be liquid at Mainnet launch, with the remaining tokens vesting over the coming years or distributed as future stake reward subsidies.
The SUI token serves four purposes on the Sui platform:
- Users can stake SUI to participate in the proof-of-stake mechanism.
- SUI is the asset denomination needed for paying the gas fees required to execute and store transactions or other operations on the Sui platform.
- SUI can be used as a versatile and liquid asset for various applications including the standard features of money – a unit of account, a medium of exchange, or a store of value – and more complex functionality enabled by smart contracts, interoperability, and composability across the Sui ecosystem.
- SUI token plays an important role in governance by acting as a right to participate in on-chain voting on issues such as protocol upgrades.
Since the SUI token is available in finite supply, the same amount of tokens will need to be used across more economic activities in the long run if Sui unlocks many use cases and millions of users migrate to the platform. In addition, the storage fund’s presence creates important monetary dynamics in that higher on-chain data requirements translate into a larger storage fund, reducing the amount of SUI in circulation.