Sui Foundation to Redirect $50.3M in SUI to Ecosystem Development

Sui Foundation, an independent organization supporting the growth of the layer-1 blockchain Sui, announced on Thursday that it would be reclaiming $50.3 million worth of SUI tokens from “external market makers,” and redirecting them to support the growth of the blockchain network.

$50.3M to Bolster Sui Network

According to an official press release, the Sui Foundation will be offering grants to developers to build more decentralized applications (dApps) on Sui, as well as supporting the Sui-owned DeepBook central limit order book (CLOB). The funds will also be used to bolster automated market makers (AMMs), liquid staking, and lending protocols building on Sui.

Notably, the latest 117 million reallocated SUI tokens will not affect the token’s circulating supply. Rather, it will complement the Sui liquid staking hackathon, where winners will be rewarded with 25 million SUI tokens.

Commenting on the foundation’s latest move, Greg Siourounis, the Director of the Sui Foundation, stated:

“Today’s reallocation represents a key influx of resources that will provide a new tailwind for Sui’s community of builders, developers, and ecosystem participants and fuel Sui’s ecosystem growth in the coming months and beyond.”

Sui’s Performance Since Launch

Notably, the Sui network has seen remarkable growth since its mainnet launch in May 2023. Only two months after its debut, the layer-1 blockchain attained two million active addresses, signaling rapid adoption. Currently, the network boasts nearly 7 million active wallet addresses, as revealed by the blockchain explorer Sui Explorer. 

The network’s total value locked (TVL) has also been growing steadily. According to on-chain data from the blockchain analytics platform DeFiLlama, Sui has garnered over $38.3 million, which is a current all-time high (ATH) for the network.

Meanwhile, SUI, the network’s native cryptocurrency, does not see as much price impact as other metrics from the Sui ecosystem. At the time of writing, SUI traded at $0.43, representing over a 5% decrease from its value a week ago.

Source: CoinStats