SUI Description
Overview
Sui (SUI) is the native gas and staking token of Sui, a standalone Layer-1 blockchain built by Mysten Labs, with mainnet launched in May 2023.
The network uses the Move programming language and an object-centric data model designed to let independent transactions execute in parallel rather than through a single sequential order. SUI is required to pay transaction fees and to secure the network through staking.
Value Proposition
Sui differentiates itself through an object-centric transaction model that lets independent operations execute and reach consensus in parallel rather than through a single global sequential ordering.
This design, paired with the Move programming language originally built for Meta's Diem project, targets high throughput for applications such as gaming and DeFi. As of 2026-08-31, the network recorded roughly 1,126,923 monthly active addresses generating on-chain revenue, with daily network fees near $3,389 against a market capitalization of approximately $2.9 billion.
Token Basics
SUI is both a utility and governance token: it pays for gas fees on the Sui network and can be staked with validators to help secure the chain.
- Staking SUI with a validator earns rewards and grants on-chain voting power over protocol upgrades and governance proposals.
- SUI also functions as collateral and a base trading asset across Sui-based DeFi and NFT applications.
Tokenomics
Sui has a fixed maximum supply of 10,000,000,000 SUI, of which approximately 4,074,529,886 SUI was circulating as of 2026-08-31.
- Reported allocation buckets include a large ecosystem/community reserve, early contributors, Series A and B investors, the Mysten Labs treasury, stake subsidies, and a Community Access Program, with a substantial portion still under long-term vesting.
- Current supply-inflation risk is assessed as low, indicating net emission is not meaningfully expanding circulating supply at this time.
Launch & Funding
Sui's token generation event occurred in April 2023, with mainnet launching the following month, roughly two years after Mysten Labs was founded in 2021.
Mysten Labs raised a $300 million Series B in September 2022, led by FTX Ventures and a16z crypto with participation from Coinbase Ventures, Jump Crypto, Circle Ventures, Binance Labs, O'Leary Ventures, and Dentsu Ventures, at a valuation reported above $2 billion; total funding across all rounds is reported near $336 million. Only about 6% of total supply was circulating at TGE.
Blockchain & Consensus
Sui runs on its own Layer-1 blockchain secured by a delegated proof-of-stake consensus mechanism, rather than being issued on top of another chain.
Validators are weighted by delegated SUI stake, with total network voting power normalized to 10,000 units; transaction finality requires signatures representing more than 6,666 units, a roughly two-thirds supermajority of participating validators.
Team
Sui was created by Mysten Labs, founded in 2021 by five former Meta engineers from the Novi Research/Diem blockchain team.
- Evan Cheng - co-founder and CEO, formerly head of R&D at Novi Financial.
- Sam Blackshear - CTO and creator of the Move programming language.
- Adeniyi Abiodun - Chief Product Officer, former Novi product lead.
- Kostas Chalkias - Chief Cryptographer.
- George Danezis - Chief Scientist.
Issuing Organization
Two entities maintain Sui today: Mysten Labs Inc., the Palo Alto, California-based company that built the protocol, and the nonprofit Sui Foundation.
The Sui Foundation is dedicated to educating, activating, funding, and promoting builders within the Sui ecosystem and to fostering decentralization of the validator set. It holds the largest single token allocation bucket, reserved for long-term ecosystem and community purposes.
Governance
Sui is governed on-chain through delegated proof-of-stake voting, where validators cast votes weighted by delegated stake on protocol upgrades proposed via formal Sui Improvement Proposals (SIPs), such as SIP-39.
Governance was tested in May 2026 when, following the Cetus Protocol exploit, the Sui Foundation stated it would remain neutral and validators, excluding the Foundation's own stake, held a vote on May 29, 2026 that passed with 90.9% in favor, authorizing recovery of roughly $162 million in frozen funds for affected users.
Roadmap
Recent development has centered on formal-verification tooling and expanding institutional access rather than protocol redesign.
- January 2026: Asymptotic's Sui Prover, a formal-verification tool for Sui Move smart contracts, was made open source.
- February 18, 2026: the first US-listed spot SUI ETFs launched - Canary Capital's "SUIS" on Nasdaq and a Grayscale product on NYSE Arca, both offering staking yield.
- SIP-39 lowered the validator entry barrier from a minimum token-stake requirement to a minimum voting-power threshold.
Security
Sui's security relies on multiple independent audit firms rather than one unified report. OtterSec has reviewed core system components and ecosystem apps, while CertiK received a $600,000 bug-bounty payout for identifying a critical vulnerability.
MoveBit, Certora, and Zellic are also active in Sui/Move security. In May 2026, the Cetus Protocol DEX on Sui was exploited for approximately $220-223 million via an integer-overflow bug in a shared math library, after which validators voted to recover roughly $162 million for affected users.
Frequently Asked Questions
What is Sui (SUI)?
Sui (SUI) is the native gas and staking token of Sui, a standalone Layer-1 blockchain built by Mysten Labs. Sui uses the Move programming language and an object-centric transaction model that allows independent operations to be processed in parallel. Mainnet launched in May 2023, following an April 2023 token generation event.
Is SUI a governance token or a utility token?
SUI serves both roles. It functions as a utility token used to pay transaction (gas) fees on the network, and as a governance token when staked with validators, granting holders on-chain voting power over protocol upgrades and other governance proposals.
What is the maximum supply of SUI?
SUI has a fixed maximum supply of 10,000,000,000 tokens, which will never increase. As of 2026-08-31, approximately 4,074,529,886 SUI, roughly 41% of the maximum, was in circulation, with the remainder subject to long-term vesting across allocation categories including ecosystem reserves and early contributors.
Who created Sui?
Sui was created by Mysten Labs, a company founded in 2021 by five former Meta engineers from the Novi Research/Diem blockchain team: Evan Cheng, Sam Blackshear, Adeniyi Abiodun, Kostas Chalkias, and George Danezis. Sam Blackshear also created the Move programming language used by Sui.
What consensus mechanism does Sui use?
Sui uses a delegated proof-of-stake consensus mechanism on its own Layer-1 blockchain. Validators are weighted by delegated SUI stake, with total voting power normalized to 10,000 units; finality requires signatures representing more than 6,666 units, a roughly two-thirds supermajority of validators.
Has Sui ever been hacked?
Yes. In May 2026, Cetus Protocol, a major decentralized exchange on Sui, was exploited for approximately $220-223 million via an integer-overflow bug. Validators later voted, with 90.9% in favor, to recover roughly $162 million of the frozen funds and return them to affected users.
Are there SUI exchange-traded funds (ETFs)?
Yes. On February 18, 2026, the first US-listed spot SUI ETFs launched: Canary Capital's "SUIS" on Nasdaq and a Grayscale product on NYSE Arca. Both products offer staking features, passing through a reported staking yield of approximately 7% to holders.
Who governs the Sui network?
Sui is governed through on-chain, delegated proof-of-stake voting by validators, alongside formal Sui Improvement Proposals (SIPs) for protocol changes. The nonprofit Sui Foundation supports ecosystem development but does not unilaterally control outcomes, as shown when it excluded its own stake from the May 2026 Cetus recovery vote.
