Sui deep dive: object model, FastPay, storage fund and tokenomics
Thread1,046 words
Bullish call$SUI−28%since listing, moved against the callHow it played out ↓Giga research thread on Sui covering Sui Move, object-centric consensus with Narwhal and Bullshark, FastPay parallel execution, the storage fund, gas pricing, tokenomics and governance.
Key claims
Valued at $2bn with a target above 100k TPS
Simple owned-object transfers skip consensus, about 80k TPS in a 20-node setup
Supply is 10bn SUI: 50% community reserve, 20% early contributors, 14% investors
0/ @SuiNetwork is valued at USD 2 BILLION & is close to launching a mainnet able of processing >100'000 TPS 🚀
NO AIRDROP but the $SUI TSUNAMI is still coming and YOU should get ready to surf it in 2023 🌊🏄♂️
so time to DYOR 📚🔍
ALPHA-packed GIGA research 🧵 on #Sui (0/47) 💧
1/ contents:
🖥️ Move Language (2-8)
🤝 Consensus Mechanism (9-16)
⛓ Parallel Execution (17-20
💾 Data Storage Fund (21-23)
⛽️ Gas Pricing Mechanism (24-26)
🪙 Tokenomics (27-32)
⚖️ Governance (33)
💼 Team & Funding (34-38)
🌐 Ecosystem (39-44)
🔍 Conclusion (45-47)
2/ 🖥️ Move Language
#Move is a programming language developed by #Sui that provides comprehensive security for smart contracts at several levels:
🛡 Language design
🛡 Virtual machine
🛡 Contract invocation
🛡 Contract execution
3/ #Move's resource type distinguishes digital assets from other data & combines strong data abstraction features, ensuring assets are not created, copied, or discarded arbitrarily. This significantly increases security
4/ #Move supports only static calls, allowing all contract execution paths to be determined at compile time. This enables full analysis & verification, revealing potential security vulnerabilities in advance and reducing the probability of system downtime
5/ #Move introduces formal verification tools, greatly reducing the cost of manual code security audits. It also aims to enable parallel processing, improving system operation efficiency
6/ #Move is developer-friendly, lowering the security threshold for development so that developers can focus on business logic. The switching cost for developers experienced in #Rust and #Solidity is relatively low
7/ While both @Aptos_Network and @SuiNetwork leverage the #Move language, they employ slightly different models. #Aptos uses the original Move language created by the #Diem team, while Sui uses their alternative version known as "Sui Move"
8/ if you want to check out the other #Move-based chain @Aptos_Network that is making big waves, check out my thread linked below 👇
x.com/expctchaos/status/1646975899617878020
9/ 🤝 Consensus Mechanism
@SuiNetwork relies on Delegated Proof-of-Stake (dPoS) to determine validators who process transactions. Validators' share of total stake determines their share of voting power for transaction processing
10/ within each epoch, operations are processed by a fixed set of validators, each with a specific amount of stake delegated from $SUI token holders. Delegating $SUI locks tokens for the entire epoch & delegates receive a portion of the stake rewards at epoch close
11/ @SuiNetwork's object-centric design allows validators to execute transactions using a causal-ordering approach. For transactions on owned objects, total ordering of transactions isn't required, making them unidirectional and consensus-free
12/ shared object transactions, however, do go through consensus for ordering agreement among nodes after validation. This unique two-layered consensus module used by #Sui, known as Narwhal & Bullshark, was developed by researchers at @Mysten_Labs and @Aptos_Network
13/ #Narwhal ensures data availability submitted to consensus, while Bullshark (or Tusk) agrees on a specific ordering of this data
14/ #Narwhal is a Mempool module based on a scaled primary-worker architecture, separating roles and requirements of the mempool across different players:
⚙️ cryptographic proofs of data availability at a primary
⚙️ disk I/O and networking requirements across several worker
15/ additionally, the #Narwhal mempool uses a structured graph data structure (DAG) for traversing data. This scaled, role-based #DAG architecture offers zero-message networking overhead design on the consensus
16/ after Narwhal, the validated certificates get ordered through the consensus among the validator nodes, a process called Bullshark or Tusk in the #Sui Consensus Engine. In August 2022, #Bullshark replaced #Tusk as the default for reduced latency and support for fairness
17/ ⛓ Parallel Execution
as mentioned, @SuiNetwork eliminates consensus for many tx types altogether. Simple transfers of tokens by their owner are confirmed virtually instantly through a process called Fast Pay, which is a Byzantine Consistent Broadcast (BCB) based algorithm
18/ #FastPay enables the #Sui network to achieve very high TPS (transactions per second) through a minimalized peer review process among validators. In a 20-node validator setting, the network can achieve ~80,000 TPS (100ms)
19/ this approach positions @SuiNetwork as a L1 solution for specific use cases where dApps generate large numbers of simple transactions, require low-latency confirmations, and are less concerned about decentralization (for example #NFTs & #gaming)
20/ so in summary, @SuiNetwork uses parallel execution for simple transactions without dependencies, while using a BFT consensus for executing more complicated transactions sequentially in a precise order
21/ 📚 Data Storage Fund
@SuiNetwork's economic design includes a storage fund that redistributes past transaction fees to future validators, addressing the intertemporal challenge of funding data storage and preventing negative network externalities.
22/ the storage fund, counted as part of the total stake, is used to adjust the share of staking rewards distributed to validators relative to $SUI delegators. This ensures the fund is never at risk of depletion, making it a sustainable long-term economic mechanism
23/ @SuiNetwork also introduces a "deletion option" for users to receive a storage fee rebate when deleting previously stored on-chain data (e.g., #NFT metadata), encouraging efficient data management
24/ ⛽️ Gas Pricing Mechanism
#Sui's gas-pricing mechanism delivers low, predictable transaction fees to users and incentivizes validators to optimize their transaction processing operations, preventing denial of service attacks
25/ by setting a network-wide reference price for gas fees at the start of each epoch, @SuiNetwork users can submit transactions without worrying about forecasting market gas prices. This also rewards good validator behaviour, aligning incentives among network participants
26/ a unique aspect of @SuiNetwork's gas pricing is the separation of fees for transaction execution and data storage, providing a more transparent cost structure for users
27/ 🪙 Tokenomics
$SUI, @SuiNetwork's native token, has a capped supply of 10 billion tokens. It serves four purposes:
✅ staking for PoS
✅ gas fee payment
✅ underpinning the Sui economy
✅ participating in on-chain voting
28/ $SUI tokens are distributed as follows:
👥 50% community reserve
👨💻 20% early contributors
💰 14% investors
🏦 10% @Mysten_Labs treasury
🪂 6% community access program & app testers
29/ since the $SUI token is available in finite supply, the same amount of tokens will need to be used across more economic activities in the long run
30/ in addition, the $SUI storage fund’s presence creates important monetary dynamics in that higher on-chain data requirements translate into a larger storage fund, reducing the amount of $SUI in circulation
7 more images on X
How the call played out · since 15 Apr 2023
Prices as of 23 Oct 2026This piece takes a view on $SUI, so that move is read against the call.
−28%
Moved against the call · since it listed on 04 May 2023, 3 weeks after this piece
- At listing
- $1.39
- Now
- $0.997
- vs BTC
- −75%
- After 1 month
- −32%
- After 3 months
- −56%
- After 1 year
- −19%
- High since
- +281% 05 Jan 2025
- Low since
- −73% 20 Oct 2023
Since then
Zero has written 2 more pieces on Sui and $SUI since this one.
Daily closes in USD from DefiLlama and Yahoo Finance. Only a bullish or bearish thesis is read as a call; explainers, maps and mentions are context. Not financial advice.