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Sui Foundation will retrieve 117 million SUI tokens from external market makers to support ecosystem and community development.

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Reallocating will not affect the circulating supply of SUI.

With the rapid growth of Sui Network's TVL and usage, the Sui Foundation announced that it will reclaim 117 million SUI from external market makers and redistribute them to multiple channels to support the growth of the Sui Network.

On October 5th, 2023, the Sui Foundation announced that it will reclaim 117 million SUI from external market makers and redistribute them to various channels that support the growth of the Sui network. The Sui network is a groundbreaking L1 blockchain that launched its mainnet in May of this year and has been praised for its scalability and industry-leading throughput, making it one of the most outstanding blockchain networks. Since these SUI tokens have already been released, their redistribution will not affect the circulating supply of SUI. These SUI tokens also include the 25 million SUI pledged for Sui liquidity staking hackathon winners announced recently.

Usually, these new funds will be used to support the growing Sui ecosystem, including providing funding to developers to build the next generation of decentralized applications on Sui, as well as supporting the most advanced DeepBook CLOB, automated market makers, liquidity staking, and lending protocols on Sui.

Based on its strong appeal demonstrated so far, Sui's DeFi ecosystem will be a major beneficiary of this reallocation of funds. According to DefiLlama's report, Sui's network TVL recently hit a record high of about $37 million, representing a growth of over 100% in the past two months. This new initiative is bound to accelerate the momentum in the early stages of growth.

Sui achieved a series of accomplishments shortly after its launch on the mainnet. For example, within two months, the Sui network set a record of executing 65.8 million transactions in a single day, surpassing the performance of all other blockchains in history. Meanwhile, due to the fact that transaction costs are not affected by congestion on the network, Sui's scalability has also been demonstrated. In just over four months, the Sui network has added more than 6 million active wallets. Recently, Sui also announced the launch of zkLogin, a Sui network native feature that allows users to access decentralized applications in a more private and secure way using the same method as Web 2 social accounts provided by Google, Facebook, Twitch, and others.

"The Sui community has achieved significant milestones in the first five months, but they only represent a part of the goals for building this network," said Greg Siourounis, head of the Sui Foundation. "Now, with the reallocation of significant resources, it will provide new momentum for builders, developers, and ecosystem participants on Sui, and drive the growth of the Sui ecosystem in the coming months and beyond."

About Sui

Sui is an innovative L1 blockchain and smart contract platform designed to make digital asset ownership fast, private, secure, and accessible to everyone. Its object-centric model based on the Move programming language enables parallel execution, sub-second confirmation, and handling of rich on-chain assets. Sui has horizontally scalable processing and storage capabilities, allowing developers to quickly and cost-effectively support a wide range of application development. Sui is a leap forward in the blockchain field, dedicated to providing a development platform that can support the next billion users in Web3 for creators and developers.