Introduction
Recently, there have been many discussions about next generation protocols and how to qualify for their token airdrop at early stages, like Arbitrum, ZkSync and Sui itself. Unfortunately, Sui recently announced that there will be no airdrop but rather users who joined their discord before February 1st will be able to buy coins at a discount. Check this tweet for more info.
Sui, which is expected to launch during 2023, is not an Ethereum layer-2 but has its own Delegated Proof of Stake (PoS) blockchain that promises to revolutionize the entire crypto space. We will be covering how they plan on doing this in this article.
If you’re looking for a gasless solution with a high scalability framework read along and we’ll explore the new frontier of PoS which is capable of building experiences that cater to the next billion users in web3.
Sui is a low-latency, high-throughput permissionless layer-1 chain. Its instant transaction finality makes Sui a prime candidate for on-chain use cases like DeFi and GameFi. Sui’s smart contracts are written in Move, a Rust-based programming language that prioritizes fast and secure transaction executions. Rust is also the programming language of Solana, another high-speed blockchain.
Instead of focusing on vertical scaling as many other cryptocurrencies do, the blockchain utilizes a process called “transaction parallelization”, allowing transaction processing in “parallel agreement.” This horizontal scaling leads to better data organization (built as independent objects) in the byzantine fault-tolerant Proof-of-Stake consensus mechanism and entails a very high throughput (transaction speed).
Sui forgoes consensus to instead use simpler and lower-latency primitives for basic use cases, such as payment transactions and asset transfers. This is unprecedented in the blockchain world and enables several new latency-sensitive distributed applications ranging from gaming to retail payment at physical points of sale.
Moreover, Sui’s gas pricing mechanism achieves the triple outcomes of delivering users with low, predictable transaction fees, incentivizing validators to optimize their transaction processing operations, and preventing spam and denial of service attacks. Nevertheless, the team comprises former Diem developers (Meta), which depending on your outlook is either good or bad.
Tokenomics
A zoomable version of the token flow diagram can be found here:
If you’re interested in the condensed, need-to-know tokenomics information for Sui, check out the report on Tokenomics Hub