Sui Foundation Establishes $51 Million Ecosystem Development Fund
On October 5th, the Sui Foundation announced the allocation of 117 million SUI tokens to establish a new ecosystem development fund, valued at $51 million USD at the time of writing. The tokens were unlocked from Sui's Community Reserve and will not affect the current circulating supply.
Sui Foundation Allocates $51 Million USD in SUI Tokens for Ecosystem Development. Image: Sui Foundation
According to the announcement posted on October 5th, the Sui Foundation, which supports the Sui blockchain, detailed the creation of the fund aimed at fostering new initiatives and next-generation DeFi applications on the Sui network. The allocated amount represents 13.6% of the current circulating supply of SUI and 1% of the total supply of 10 billion SUI tokens in the project.
📣Breaking news! We're reallocating 117M SUI from external market makers and redirecting them to initiatives designed to fuel ecosystem and community growth!
— Sui (@SuiNetwork) October 5, 2023
Dive into the press release for all the details.👇 #BuildOnSuihttps://t.co/G0kZOAvbaj
?Breaking news! We're reallocating 117M SUI from external market makers and redirecting them to initiatives designed to fuel ecosystem and community growth!
Dive into the press release for all the details.? #BuildOnSuihttps://t.co/G0kZOAvbaj— Sui (@SuiNetwork) October 5, 2023
The new ecosystem development fund will focus on nurturing initiatives and DeFi applications leveraging features such as the DeepBook CLOB order book mechanism, AMM, liquid staking, and lending.
Since launching its mainnet in early May 2023, the Sui blockchain has set a record of processing 65.8 million transactions in a single day. However, this is seen as only a fraction of the network's true potential.
Despite these achievements, the price of the SUI token has significantly declined from its peak of $2 at the mainnet launch to $0.44 at the time of this article.
Sui Foundation has also faced allegations of "wash trading" SUI staking rewards on Binance and pressure to sell unlocked tokens from the Community Reserve.
Sui utilizes the Move programming language developed by Facebook, similar to Aptos. In 2022, the project raised $300 million with a valuation reaching up to $2 billion.
The SUI token price showed little volatility following the news of Sui Foundation's establishment of the ecosystem development fund.
1-day chart of SUI/USDT pair on Binance as of 08:25 PM on October 5, 2023.
