Sui: The Sui Smart Contracts Platform

What is Sui

Friends, imagine we’re building a superhighway—one that can handle a massive number of vehicles (that is, blockchain transactions), lets them travel at lightning speed, and charges very little for the ride. Sui (pronounced “sway”) is just such a “superhighway” project: a brand-new Layer 1 blockchain, like Bitcoin and Ethereum, serving as foundational infrastructure for the blockchain world.

Sui’s goal is to make blockchain technology more user-friendly and scalable, supporting billions of users with the same smoothness as the internet we use every day. It’s especially adept at handling applications that require fast responses, such as games (GameFi), decentralized finance (DeFi), and various digital assets (like NFTs).

Its most unique feature is that it treats everything on the blockchain as an “object” rather than the traditional “account.” You can think of each digital asset—like a collectible NFT or the tokens in your account—as an independent “building block” with its own attributes and logic. This “building block” design allows Sui to process many unrelated transactions simultaneously, just like multiple lanes on a highway can carry cars at the same time, greatly improving efficiency.

Project Vision and Value Proposition

Sui’s vision is to become the platform that can onboard “the next billion Web3 users.” Its core value proposition is to solve the “blockchain trilemma”—finding a better balance between decentralization, security, and scalability. Many older blockchains hit bottlenecks in transaction speed and fees, much like highways get jammed at rush hour and tolls become expensive.

Sui aims to deliver ultra-high throughput (transactions per second), extremely low latency (fast transaction confirmation), and predictable low fees through its innovative architecture, enabling Web3 apps to run as smoothly and widely as Web2 apps. Simply put, it wants blockchain applications to be accessible to the general public, not just tech enthusiasts—using them should be as easy as using a mobile app.

Compared to similar projects, Sui stands out for its unique “object-centric model” and “parallel execution” capabilities. This makes it more efficient at handling large volumes of independent transactions, especially in scenarios requiring frequent interactions, such as item trading in multiplayer online games or posting in social apps.

Technical Features

Sui’s technology is like a finely tuned engine, enabling it to run fast and steady:

Object-Centric Model and Parallel Execution

Imagine you have a pile of toy blocks, each one an independent “object.” Sui stores data in this way: every digital asset (like an NFT or a SUI token) is a separate “object” with its own unique identity and attributes. When these “blocks” aren’t directly related, Sui can have different “workers” process them simultaneously, without waiting in line. This is “parallel execution,” which dramatically boosts transaction speed and network throughput—like multiple assembly lines working at once.

Move Programming Language

Sui uses a programming language called Move to write smart contracts. Move was originally developed by Facebook (now Meta) for the Diem project, with a strong focus on security and asset ownership from the start. Think of it as a “security lock” custom-built for digital assets, effectively preventing common smart contract vulnerabilities, such as accidental asset transfers or double-spending. This allows developers to build a wide range of applications more safely and flexibly.

Consensus Mechanism

Sui adopts the Proof-of-Stake (PoS) consensus mechanism. Instead of “mining” to validate transactions, “validators” who hold SUI tokens earn the right to validate transactions by staking their tokens. Staking is like putting down a deposit to guarantee honest work. Sui combines advanced consensus protocols like Narwhal and Tusk (or Bullshark), which separate transaction ordering from execution, further optimizing network performance and achieving “sub-second finality”—meaning transactions are completed and confirmed almost instantly.

User Experience Optimization

Sui introduces innovative features to enhance user experience, such as zkLogin and Sponsored Transactions. zkLogin lets users create wallets using familiar Web2 credentials (like Google accounts), lowering the entry barrier to Web3. Sponsored Transactions allow app developers to pay transaction fees for users, so users don’t feel the “gas fee”—it’s like playing a free game.

Tokenomics

Sui’s native token is SUI, which serves as the “fuel” and “lifeblood” of the entire Sui network.

Token Basics

• Token Symbol: SUI
• Total Supply: SUI has a capped total supply of 10 billion tokens. This fixed amount is designed for long-term predictability.
• Issuance Mechanism: At mainnet launch, only a portion of SUI entered circulation; the rest will be gradually unlocked according to a predetermined release schedule, for ecosystem development, community rewards, team incentives, etc.
• Current and Future Circulation: As of April 2025, about 32.5% of the total supply is in circulation. The remaining tokens will be released gradually over the coming years according to the set vesting schedule.

Token Utility

SUI tokens have several core uses within the network:

• Paying Gas Fees: Just as cars need gasoline, any operation on the Sui network (such as sending transactions, deploying smart contracts, interacting with DApps) requires SUI as gas fees.
• Participating in Staking: SUI holders can stake their tokens to validators, participating in the network’s PoS mechanism, helping secure the network, and earning staking rewards.
• Governance: SUI holders have the right to participate in Sui network governance, voting on protocol upgrades and key decisions to collectively determine the network’s direction.
• Storage Fund: Sui has a unique storage fund mechanism: users pay fees into this fund when storing data on-chain. The fund compensates future validators for the cost of storing this data, ensuring long-term sustainable storage.

Token Allocation and Unlocking Information

SUI token allocation is designed to support the network’s long-term development and decentralization. Most tokens are allocated to community reserves, staking subsidies, early contributors, series funding investors (such as Series A, B), and the Mysten Labs team treasury. These tokens are unlocked gradually according to a strict vesting schedule to avoid market volatility and excessive dilution.

Team, Governance, and Funding

Team

The Sui project is developed by Mysten Labs, founded by a group of experienced engineers, most of whom come from Meta (Facebook) and were involved in the Diem (formerly Libra) blockchain project and the development of the Move programming language. Key members include:

• Evan Cheng: CEO, with over 27 years of experience in tech, formerly head of Meta Libra R&D.
• Adeniyi Abiodun: Chief Product Officer.
• Sam Blackshear: CTO, co-founder of the Move programming language.
• George Danezis: Chief Scientist.
• Kostas Chalkias: Chief Cryptographer.

This team has deep expertise in distributed systems, cryptography, and programming languages, laying the foundation for Sui’s innovative architecture and high performance.

Governance Mechanism

Sui’s governance mechanism is designed to ensure decentralization and community participation. SUI holders can stake tokens to validators and vote to influence major network decisions. While the Sui Foundation plays a key role in the project’s early stages, community-driven proposals (such as SIPs) show the community’s influence in decision-making. Additionally, on-chain governance platforms like Movernance have emerged in the ecosystem, providing voting, proposal, and incentive mechanisms to further promote decentralized governance.

Funding

Mysten Labs has received backing from several well-known investment institutions, reflecting market confidence in the project. For example, a16z invested $36 million in the Series A round in December 2021. Later, in 2022, Mysten Labs raised $300 million in a Series B led by FTX Ventures, bringing the company’s valuation to $2 billion. Other investors include Coinbase Ventures, Binance Labs, and more.

Roadmap

Since Sui’s mainnet launch in May 2023, it has been actively developing and iterating.

Key Historical Milestones and Events

• December 2021: Mysten Labs raised $36 million in a Series A led by a16z.
• 2022: Mysten Labs raised $300 million in a Series B led by FTX Ventures.
• May 2023: Sui mainnet officially launched.
• End of 2023: Interactive RPC 2.0 demo released.
• January 2024: RPC 2.0 fully available, most Move 2024 features released, and new congestion control mechanisms introduced.

Future Plans and Milestones (2024 and Beyond)

Sui’s future plans focus on network scaling, developer empowerment, and ecosystem growth:

• Network Scaling: Ongoing optimization of scalability, such as parallel optimistic execution and faster pricing data.
• Developer Tools: Launching more advanced developer tools and features to simplify development.
• User Friendliness: Enhancing user experience through integration with major exchanges and streamlined token onboarding.
• DeFi Upgrades: Plans to launch more DeFi protocols, such as Aftermath’s perpetual contract market and the new automated market maker (AMM) Steamm, aiming to improve capital efficiency and attract liquidity.
• Ecosystem Expansion: Continuously attracting more projects to the Sui ecosystem, including DeFi, GameFi, NFT, and more.
• Data Storage and AI Support: Committed to supporting large-scale data storage and advanced AI applications.

Common Risk Reminders

While Sui shows great potential, as an emerging technology and investment sector, blockchain projects come with inherent risks. Here are some common risk reminders:

Technical and Security Risks

• Smart Contract Vulnerabilities: Although Move is designed for security, any complex smart contract may have unknown vulnerabilities that could lead to asset loss.
• Network Attacks: Blockchain networks may face various attacks, such as 51% attacks (with different forms under PoS), DDoS attacks, etc., which could affect network stability and security.
• Technical Complexity: Sui’s innovative technologies (like the object model and parallel execution) are powerful but add complexity, potentially posing challenges in development and maintenance.
• Unknown Risks of New Technology: As a relatively new Layer 1 blockchain, Sui may encounter technical issues that have not yet been discovered or tested.

Economic Risks

• Market Volatility: The crypto market is known for its extreme volatility; SUI token prices may be affected by market sentiment, macroeconomic factors, and project developments.
• Competition Risk: The Layer 1 blockchain space is highly competitive; Sui must keep innovating and growing to stand out among many projects.
• Token Unlocking: Although SUI’s gradual unlocking plan aims to stabilize the market, large amounts entering circulation may still put downward pressure on prices.
• Liquidity Risk: In some cases, token liquidity may be insufficient, leading to wide bid-ask spreads or difficulty in executing large trades.

Compliance and Operational Risks

• Regulatory Uncertainty: Global crypto regulations are evolving; future policy changes may impact the Sui project and its tokens.
• Centralization Risk: Although the goal is decentralization, there may be some degree of centralization in the early stages or certain aspects, such as validator concentration or foundation decision-making.
• Community Participation: Effective governance depends on active community involvement; insufficient participation may affect the project’s healthy development.

Please note: The above information is for reference only and does not constitute investment advice. Always conduct thorough independent research and risk assessment before making any investment decisions.

Verification Checklist

If you want to learn more about the Sui project, here are some important ways to verify:

• Block Explorers:
  • SuiVision: A Sui blockchain explorer for viewing transactions, wallets, staking, validators, and more, with data visualization tools.
  • Suiscan: Another feature-rich Sui blockchain explorer and analytics platform, providing detailed insights into transactions, addresses, and network activity.

  With block explorers, you can view network activity in real time and verify transaction transparency and network activity.

• GitHub Activity:
  • MystenLabs/sui GitHub Repository: Sui’s codebase is hosted on GitHub. Check its commit history, code update frequency, issue resolution, and community contributions to assess development activity and project health.

  An active GitHub repo usually means ongoing development and strong technical community support.

• Official Documentation and Whitepaper:
  • Sui Official Documentation: Provides developer guides, concept explanations, tokenomics, and more.
  • Sui Whitepaper: Details Sui’s technical design, economic model, and vision.

  These are the most authoritative sources for understanding the project’s core principles and future plans.

Project Summary

Sui is a Layer 1 blockchain project built by a team of former Meta engineers, aiming to solve scalability and performance pain points in existing blockchains through its unique “object-centric model” and “parallel execution” architecture. It uses the Move programming language, emphasizes smart contract security, and combines advanced PoS consensus mechanisms to achieve high throughput, low latency, and low transaction fees, providing a more efficient and user-friendly platform for Web3 applications.

The SUI token serves as the network’s fuel, staking tool, and governance credential, playing a central role in the ecosystem. The project team has a strong background and is backed by well-known investment institutions. While Sui shows great potential in technical innovation and ecosystem building, every crypto project carries risks in technology, economics, and compliance.

In summary, Sui is working to build next-generation blockchain infrastructure capable of supporting large-scale users and complex applications. Its innovation lies in its unique data processing approach and its focus on developer and user experience. However, the crypto market is full of uncertainty, and the project’s success will take time to prove. The above is an introduction to the Sui project and does not constitute investment advice. Before participating in any crypto project, be sure to conduct comprehensive independent research and fully understand the risks involved.