In a calculated move to propel its ecosystem’s growth, Sui Foundation is strategically reallocating 117 million SUI tokens, constituting 13.6% of its circulating supply and 1% of the total supply, valued at $51 million.
Key Takeaways
- Since its Layer 1 blockchain was unveiled on the mainnet five months ago, SUI’s price experienced a sharp decline, dropping from an initial trading price of $1.40 in May to the current $0.44, as per CoinGecko data.
- The foundation has decided to redirect the aforementioned SUI tokens into various channels, aiming to reinforce its ecosystem. Notably, since these tokens have already been released, the redistribution will not impact the circulating supply.
- The “Community Reserve” of the Sui Foundation, which holds over half of all SUI tokens, utilizes them across numerous community programs.
Target Development Support
The freshly reallocated resources will predominantly back Sui’s developing ecosystem. The areas of focus include providing grants to developers, thereby encouraging the creation of a new generation of decentralized applications (DApps) on Sui. Furthermore, it will lend support to Sui’s state-of-the-art DeepBook CLOB, automated market makers, and liquid staking and lending protocols within the network.
Impressive Early Performance
Despite its relatively recent launch, Sui managed to execute an industry-leading 65.8 million transactions in a single day, only two months post-launch, outperforming all other blockchains historically. The network also expanded to incorporate over 6 million active wallets in a little over four months.
Sui Foundation reallocates 117 million SUI from external market makers to support growth initiatives https://t.co/QAbM2JPabG
— The Block (@TheBlock__) October 5, 2023
Greg Siourounis, Sui Foundation’s Managing Director, emphasized that while the milestones achieved by Sui and its community in the initial five months have been noteworthy, they only signify a small portion of the network’s ultimate potential. The present reallocation is pivotal, providing a fresh influx of resources anticipated to energize the community of developers, builders, and ecosystem participants, thereby catalyzing Sui’s ecosystem growth in forthcoming months and beyond.
Conclusion
Less than a year earlier, Mysten Labs, the creator of Sui, successfully closed a fundraise of $300 million, elevating its valuation above the $2 billion mark. Notably, Mysten was established by five ex-Meta employees, who had previously been involved in crypto initiatives for the technological powerhouse.