Sui Foundation Redirects 117 Million Tokens to Boost Network Development

The Sui Foundation has made a strategic move by retrieving 117 million SUI tokens from external market partners. These tokens, originally allocated for liquidity, are now being redirected to support the direct development of the Sui Network's infrastructure. This decision highlights the foundation's long-term commitment to the network's growth and stability.

The reallocated tokens will be used to fund validator subsidies, the development of open-source tools, and advancements at the protocol level. Additionally, developers will receive new grants to encourage the deployment of advanced decentralized applications (dApps). This reallocation aims to optimize Layer 1 performance, enhancing the overall blockchain performance under high demand. Sui's goal is to improve the developer experience while driving innovation in decentralized finance (DeFi). The 117 million tokens will not impact the circulating supply, thus avoiding any inflationary pressure. These resources represent over 13% of the circulating tokens and approximately 1% of the total supply.

Since its launch in May, the Sui Network has shown remarkable on-chain performance, surpassing 65 million transactions daily and outpacing many legacy blockchains. Innovations such as zkLogin and Move-based smart contracts have been pivotal in this growth. zkLogin, in particular, enables Web2 users to interact with dApps securely without the need for private keys, resulting in over 6 million unique wallets generated since the network's launch. The total value locked (TVL) in the network has recently surged to over $38 million, doubling in just two months.

The Sui Network's DeFi layer is being enhanced by tools like DeepBook and liquid staking protocols, which improve capital efficiency and bring liquidity into the network. The redistribution of tokens will further support these market-building initiatives, fostering a more robust and dynamic ecosystem.

The Sui Foundation's decision to redirect capital into grants aligns with its decentralized governance roadmap, focusing on composability, security, and expanding core protocol capabilities. Sui's architecture, which emphasizes horizontal scalability and near-instant finality, attracts developers seeking high-performance Web3 applications. Key sectors include gaming, NFTs, and tokenized real-world assets (RWAs).

By shifting unused market-maker tokens, Sui is unlocking stagnant capital for builders, enhancing the network's resilience while maintaining predictable monetary policies. The Foundation's proactive management reflects a mature and disciplined approach to blockchain governance. Sui is well-positioned to remain competitive in the evolving Layer 1 landscape, with a roadmap that combines foundational investment with responsive community support. This approach is expected to accelerate user adoption and ecosystem diversification in the coming years.