What is Sui (SUI)?
Sui is a Layer 1 blockchain built for speed. Former Meta Diem engineers created it at Mysten Labs. It uses the Move language and processes transactions in parallel - up to 297,000 TPS with sub-second finality.
Key Facts
What is Sui?
Sui is a Layer 1 blockchain built for extreme speed. Most blockchains process transactions one by one. Sui processes them in parallel - up to 297,000 TPS with sub-second finality. Mysten Labs built it using years of research from Meta's Diem project.
Everything on Sui is an object with a unique ID:
- • Owned objects: Your tokens. Only you can modify them.
- • Shared objects: Like liquidity pools. Anyone can interact.
- • Immutable objects: Deployed code. Read-only.
Independent objects process simultaneously. No bottlenecks like account-based chains.
Sui uses the Move language. Key benefits:
- • Assets can't be copied or double-spent
- • Contracts can be formally verified
- • Type-safe programming prevents common bugs
Features like zkLogin (sign in with Google) and Sponsored Transactions (dApps pay gas for you) make it accessible to regular users.
Who Created Sui? A Brief History
Origins and Founding
Mysten Labs created Sui. Founded in 2021 by five engineers who led Meta's Diem blockchain:
- • Evan Cheng (CEO)
- • Sam Blackshear (CTO, Move creator)
- • Adeniyi Abiodun (CPO)
- • George Danezis (Chief Scientist)
- • Kostas Chalkias (Chief Cryptographer)
When Meta shut down Diem, they left to build their vision without corporate constraints. They kept Move and designed Sui's object model to fix scalability problems they'd seen elsewhere.
Key Milestones
- • 2021: Mysten Labs founded after Meta shuts down Diem; Sui development begins.
- • 2021-2022: Raises $336 million from a16z, FTX Ventures, Binance Labs, Coinbase Ventures, and other major investors.
- • August 2022: Sui testnet launches for developer testing and community access.
- • May 3, 2023: Sui mainnet goes live; SUI token begins trading.
- • 2023-Present: Rapid ecosystem growth with DeFi protocols, gaming projects, and NFT marketplaces building on Sui.
Sui Today
One of the newest major Layer 1s. Strong developer interest and VC backing. Key points:
- • Sui Foundation: Independent org funding grants and ecosystem growth
- • Validators: Dozens, including Chorus One, Figment, Blockdaemon
- • Focus areas: Gaming and dynamic NFTs that change based on on-chain actions
How Sui Works
Sui works differently from Ethereum or Solana. Its object model and dual-path processing enable performance traditional chains can't match.
Object-Centric Data Model
Everything on Sui is an object with a unique ID and version number. Your SUI tokens are specific objects. Your NFT is a specific object. Each tracks its own state.
Why this matters: if two transactions touch different objects, they run simultaneously. No conflicts. Traditional chains share global state and must process sequentially. Sui removes that bottleneck.
Parallel Transaction Processing
Sui has two paths:
- • Simple transactions: Skip consensus. Validators certify instantly. Sub-second finality.
- • Complex transactions: Use Narwhal-Bullshark consensus for shared objects like DeFi pools.
More validators = more throughput. Independent transactions run in parallel across machines.
Delegated Proof-of-Stake
Sui uses Delegated Proof-of-Stake with 24-hour epochs:
- • Delegate SUI to validators who produce blocks
- • Rewards distributed based on stake
- • Gas fees burned (deflationary during high usage)
- • No slashing risk for delegators - only validators
Move Programming Language
Smart contracts use Move, built for safe asset management:
- • Assets can't be copied, destroyed, or double-spent
- • Guarantees enforced at compile time
- • Formal verification proves correctness
Steeper learning curve than Solidity, but prevents vulnerability classes that caused billions in hacks.
How to Stake SUI
Non-custodial staking. You keep control of your tokens. No minimum. No lock-up.
How Sui Staking Works
Delegate to a validator. Tokens stay in your wallet. You're just signaling support for that validator.
- • Rewards every 24 hours (3-7% APY)
- • Unstake anytime - takes effect next epoch
- • Rewards compound automatically
Getting Started with Staking
- Get a wallet: Sui Wallet, Martian, or Suiet
- Back up your 12-word recovery phrase
- Transfer SUI from an exchange
- Go to staking section, pick a validator
- Confirm delegation (small fee, no deposit)
Rewards start accumulating immediately.
Choosing a Validator
What to check:
- • Commission: Typically 2-10%
- • Uptime: Look for high reliability
- • Voting power: Avoid over-concentrated validators for decentralization
Liquid staking (Aftermath Finance) gives you afSUI tokens - tradable while still earning rewards.
Tip: Wallet staking beats exchange staking. Exchanges take 25-50% of rewards and control your keys. Stake directly for more rewards and full custody.
Why SUI Has Value
Why SUI has demand:
- • Every transaction needs SUI for gas
- • Gas fees are burned (deflationary during high usage)
- • Staking locks supply while earning 3-7% APY
- • 10 billion max supply creates scarcity
Note: Only ~29% of tokens circulate now. The rest vests through 2027.
Technical advantages:
- • Highest throughput of any production blockchain
- • Attracts gaming, dynamic NFT, and DeFi developers
- • zkLogin and Sponsored Transactions lower entry barriers
- • $336M in VC backing, ex-Meta team credibility
Challenges:
- • Mainnet only 2 years old - unproven under sustained stress
- • Token unlocks through 2027 (supply will ~3x)
- • Competition: Solana, Ethereum L2s, Aptos
- • Smaller ecosystem = fewer apps and less liquidity
- • Regulatory uncertainty around token sale structure
How to Buy SUI
Available on most major exchanges. Buy, then stake immediately in your own wallet.
1Compare providers and total cost
Binance, Coinbase, Kraken, KuCoin, OKX all list SUI. Compare price, trading fees, spread, and withdrawal fees. Binance has low fees; Coinbase has easier US fiat on-ramps.
2Create and verify your account
Email, password, 2FA. Most require KYC (government ID). Takes minutes to hours.
3Deposit funds
Bank transfer (cheap, slow), card (instant, 2-4% fee), or crypto deposit. Can also bridge from other chains via Wormhole or Celer.
4Buy SUI and start staking
Buy on exchange, then withdraw to Sui Wallet, Martian, or Suiet. Delegate to a validator for 3-7% APY. Tokens stay liquid and under your control.
Next step: Compare SUI providers in your country to find the best price.
How to Store SUI
Sui Wallet (Official)
Browser extension by Mysten Labs. Built-in staking, NFT viewing, dApp connections. Install, create wallet, back up 12 words. Best for full ecosystem compatibility.
Martian Wallet
Multi-chain wallet supporting Sui and Aptos. Browser extension + mobile app. Good for users holding both Move-based tokens.
Hardware Wallets
Ledger Nano X/S supports SUI via Ledger Live. Keys stay offline - best security for large holdings. Connect to Sui Wallet for staking while keeping keys protected.
Exchange Wallets
Convenient for trading. But exchanges control your keys - if they get hacked or go bankrupt, you lose access. Exchange staking pays less than self-custody. Only keep what you're actively trading.
Security: 12-word phrase = only wallet recovery. Write it on paper, never digital, never share. Test with small amounts first.
How to Use SUI (SUI)
Beyond holding and staking, Sui has a growing ecosystem of DeFi, NFTs, and games.
Staking and Passive Income
Main use case. Delegate to validators for 3-7% APY. Non-custodial, no minimum, no lock-up. Rewards every 24 hours, auto-compound. Liquid staking (Aftermath Finance) gives you afSUI tokens - tradable while earning.
DeFi Applications
Key protocols:
- • DEXs: Cetus Protocol, Turbos Finance
- • Lending: Scallop
- • Yield: Various optimization platforms
Fees are fractions of a cent. DeFi interactions that cost $50+ on Ethereum cost almost nothing here.
NFTs and Gaming
Sui excels at on-chain gaming and dynamic NFTs that change based on in-game actions. High throughput supports thousands of concurrent players. Games: Sui 8192, Cosmocadia, Panzerdogs. Minting and transfers stay cheap regardless of network activity.
Web2-Friendly Features
- • zkLogin: Sign in with Google/Facebook/Twitch. No private keys to manage.
- • Sponsored Transactions: dApps pay gas for you. New users don't need SUI to start.
Makes Sui uniquely accessible for mainstream apps.
Notable People in Sui
Built by ex-Meta Diem engineers. Informational only, not endorsement.
Evan Cheng
CEO of Mysten Labs. Led Meta's Diem initiative. Previously at Apple (LLVM compiler). PhD from University of Illinois. Oversees strategy and fundraising.
Sam Blackshear
CTO. Created the Move language at Meta. PhD from Carnegie Mellon. Leads Sui's technical architecture and consensus design.
Adeniyi Abiodun
CPO. Led product for Meta's Novi wallet. Background at VMware and HSBC. Focuses on UX and developer tools.
George Danezis
Chief Scientist. Professor at UCL. Expert in distributed systems and cryptography. Co-designed Narwhal-Bullshark consensus.
Kostas Chalkias
Chief Cryptographer. Led crypto at Novi, R3, Dfinity. Specializes in zero-knowledge proofs. Designed zkLogin.
Regulation Overview for Sui
Launched in 2023 - regulatory status still evolving. Mysten Labs has been proactive on compliance, but uncertainty remains.
United States
Token sale used a KYC-verified Community Access Program (not public ICO). No SEC enforcement so far. Coinbase and Kraken list SUI - suggests compliance confidence, but doesn't guarantee future clarity. Currently treated as digital asset, not security, but could change.
Global Availability
- • EU: Crypto-asset token under MiCA
- • Singapore: Digital payment token (MAS)
- • Japan: Not classified as security (FSA)
- • UK, Canada, Hong Kong: Available on regulated exchanges
Sui Foundation operates independently to reduce single-point regulatory risk.
Tax Treatment
- • Selling/trading triggers capital gains
- • Staking rewards taxed as income when received
- • Holding alone = no taxable event
- • 24-hour reward distribution = frequent taxable events for stakers
Consult a tax professional for your jurisdiction.
Note: Mysten Labs structured distribution carefully. But crypto regulation is uncertain. SEC actions, exchange delistings, or new rules could affect SUI's availability. Stay informed.
FAQs About Sui (SUI)
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