The Sui economy is characterized by three main sets of participants:
- Users submit transactions to the Sui platform in order to create, mutate, and transfer digital assets or interact with more sophisticated applications enabled by smart contracts, interoperability, and composability.
- SUI token holders bear the option of delegating their tokens to validators and participating in the proof-of-stake mechanism. SUI owners also hold the rights to participate in Sui’s governance.
- Validators manage transaction processing and execution on the Sui platform.
The Sui economy has five core components:
- The SUI token is the Sui platform’s native asset.
- Gas fees are charged on all network operations and used to reward participants of the proof-of-stake mechanism and prevent spam and denial-of-service attacks.
- Sui’s storage fund is used to shift stake rewards across time and compensate future validators for storage costs of previously stored on-chain data.
- The proof-of-stake mechanism is used to select, incentivize, and reward honest behavior by the Sui platform’s operators – i.e. validators and the SUI delegators.
- On-chain voting is used for governance and protocol upgrades