12 min readLaunched on May 3, 2023, Sui is a Layer‑1 blockchain developed by Mysten Labs, founded by former Meta engineers Evan Cheng, Sam Blackshear, Adeniyi Abiodun and George Danezis, who all previously contributed to the Diem project. The Sui Foundation, established in 2022, is an independent, non-profit entity responsible for stewarding the Sui ecosystem.
The foundation's primary role is to fund developers, support infrastructure growth and build strategic partnerships, fostering adoption, decentralizing governance and ensuring long-term sustainability across diverse application verticals.
The Sui chain was conceived to solve core blockchain pain points, namely speed, scalability and decentralization, delivering consistent transaction performance even under heavy load.
For businesses and builders, that means predictable costs, better user experience and confidence in deployment.
Sui key technical features
Sui combines cutting-edge architecture with practical benefits for developers and users alike via:
Sui uses a delegated Proof-of-Stake (dPoS) system, meaning that Sui relies on a network of validators (think of them as referees) who check that everything is fair. People who own Sui tokens can delegate them to these referees to help keep the system secure, and in return, they share rewards. Plus, unlike other blockchains where everything is jumbled together, Sui can separate things out, so simpler transactions don’t get slowed down by more complex ones. By separating data availability from transaction ordering, Sui can process many transactions at the same time instead of lining them up one by one. Separating these two steps speeds up performance and avoids the traffic jams seen on slower blockchains. Sui started with a system called Narwhal & Bullshark (protocol names) but recently introduced Mysticeti, an even faster system that gets things done almost instantly: according to the official documentation, it reduces the latency by 80% compared to the previous protocols.
Most transactions finalize in under a second, securing a responsive user experience while maintaining deterministic consensus for accuracy and trust.
Sui’s code is written in Move, a language originally developed for Meta’s Diem project. This is no coincidence, as much of Sui’s founding team came from Meta. Move was purposely designed to avoid common pitfalls in blockchain code, such as accidentally spending the same money twice or enabling complex hacks, and it prevents many errors before the code even runs.
How Sui’s network performance stacks up against other layer-1s
Sui’s architecture prioritizes parallel execution to reach high transactions per second (TPS), a design choice that differentiates it from sequential blockchains. Ethereum’s mainnet averages around 15-30 TPS, while Solana is often referenced as being able to carry out thousands of TPS with minimal fees.
For many simple transfers, Sui achieves sub-second finality, compared with seconds on Solana and several minutes on Ethereum. Transaction fees are kept low and predictable through its gas pricing model, in contrast to Ethereum’s variable costs under network congestion.
While parallel execution enables Sui to process thousands of transactions per second, its network has also maintained near-continuous uptime since mainnet launch in 2023.
This operational consistency compares favorably with other high-performance chains that have experienced periodic outages, reinforcing Sui’s positioning as both fast and reliable.
SUI token utility & tokenomics
Sui refers to the blockchain network itself, while SUI is its native token used to power transactions, staking and governance.
SUI plays four key roles in the network's economy:
Gas for execution and storage: Every transaction or smart contract call is paid for in SUI, ensuring fair and sustainable use of network resources.
Stake-based security through delegation: Token holders can stake SUI to validators, securing the network and earning staking rewards.
Governance rights: Holders can shape protocol rules and future upgrades through on-chain voting.
Economic anchor: SUI underpins DeFi markets, NFT transactions and on-chain storage, acting as the unit of account across the ecosystem.
By combining these utilities, SUI becomes a token for transactions and the backbone of the network's security, governance and economic activity.
Tokenomics and Supply Overview
Sui's tokenomics define the network's supply cap, unlock schedule and allocation model, with resources structured to support ecosystem growth and participation. The breakdown is as follows:
Supply cap: Fixed at 10 billion SUI.
Circulating supply in 2025: Roughly 3.5 billion (~35%) unlocked.
Locked: ~6.5 billion tied to vesting through 2030.
Distribution of SUI
The SUI token allocation is structured to balance community incentives, contributor rewards, and long-term development funding:
50%: Community Reserve (grants, incentives, validator support)
20%: Early Contributors
14%: Venture Investors
10%: Mysten Labs Treasury
6%: Community Access & Pre-launch Testers
Public circulation is expected to rise steadily through ecosystem rewards and vesting transitions. The Community Reserve and early access tokens are the backbone for user and developer engagement.
Ecosystem & development
Since launch, Sui's network has expanded steadily, powering applications in finance, gaming, digital assets and cross-chain connectivity, key areas include:
Core focus areas: DeFi, gaming, NFTs, and cross-chain interoperability.
Enterprise and real-world assets: Ondo Finance enables tokenized real estate, art, and commodities for fractional ownership. A licensing dApp handles over 35,000 daily activations, showcasing enterprise-grade scalability.
DeFi and token-native applications: Key platforms include Cetus (DEX), Turbos Finance, DeepBook, and Suilend, alongside stablecoins such as USDY and USDC. In early 2025, Sui’s DeFi ecosystem held approximately $2 billion in total value, with Cetus contributing the largest share.
Gaming and NFTs: Features dynamic NFTs and titles like Wizard Land, Baby Apes, and Sweebs, leveraging real-time asset interaction.
Interoperability: Supports bridges to Ethereum and BNB, with expansion underway via Cosmos and EVM protocols.
Its development is notably supported by the non-profit Sui Foundation. In an interview with CoinShares, Sui Foundation Managing Director Christian Thompson explained:
"The foundation’s mission is to scale adoption by positioning Sui as the most developer-friendly, high-performance blockchain."
By early to mid-2025, Sui’s ecosystem showed strong growth across core performance indicators. Total value locked (TVL) climbed to roughly $2.2 billion illustrated in the chart below.
Decentralized exchange (DEX) activity averaged around $423 million in daily volume, generating revenues in the tens of thousands. The stablecoin market within the network also expanded, surpassing $500 million in supply.
This ecosystem shows momentum across multiple verticals while maintaining a technical edge. Reflecting on Sui’s future, Managing Director Christian Thompson told CoinShares,
“We want Sui to be a place where developers can build anything they imagine, without compromise.”
Summary & strategic considerations
Sui’s positioning as a high-throughput, low-latency Layer-1 gives it a distinct role in the broader crypto landscape. Rather than competing directly with Bitcoin’s store-of-value narrative or Ethereum’s established DeFi and smart contract dominance, Sui’s architecture and tokenomics make it more complementary — especially for applications that require predictable costs, fast settlement, and asset programmability.
For portfolio construction, SUI may serve as an allocation within the high-performance infrastructure category, offering exposure to emerging DeFi, gaming, and cross-chain opportunities. Risk management should consider token unlock schedules, liquidity depth, and the developer ecosystem’s growth trajectory when weighing its inclusion.
Strengths and limitations of Sui
Benefits
Sui's strengths center on speed, security and developer-focused design. Other benefits include:
High-speed settlement: Supports high-frequency activity with sub-second finality.
Secure contracts: Built with the Move language for safety and flexibility.
Strong funding base: Well-capitalized foundation and grant programs drive expansion.
Broad adoption: Active in both consumer and enterprise applications.
Drawbacks
Some structural factors could slow wider uptake. These include:
Token unlock risk: Vesting schedules may create market price pressure.
Specialized development: Reliance on Move language limits developer pool.
Ecosystem size: dApp landscape remains smaller than major networks.
Conclusion
For institutional investors and asset allocators, SUI offers exposure to the high-throughput L1 segment, supported by transparent governance, a paced token release and a growing ecosystem.
As the network evolves, keeping an eye on unlock schedules, validator distribution and cross-chain integrations will be key to evaluating the long-term potential of Sui in the broader blockchain landscape.
