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- The Sui Foundation aims to reclaim $51.3 million worth of tokens from external market makers to bolster its DeFi ecosystem and DeepBook.
- Sui ranks 35th in terms of total deposits in DeFi protocols, with assets worth $38.2 million according to recent data.
Sui Foundation, the independent organization committed to the development of the Sui blockchain has announced its plans to boost the network’s ecosystem with a $51.3 million fund. According to the announcement, the foundation will claim 117 million SUI tokens worth $51.3 million from “external market makers.” The funds will then be directed to the development of the Sui ecosystem starting with the on-chain central limit order book-based platform, DeepBook.
This development, defined as a “redirect” comes just five months after the launch of its Layer 1 blockchain launched on mainnet. During the launch, the foundation allocated nearly 396 million to market makers, representing 75 percent of its initial circulating supply.
📣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 team has been vocal about the achievements of the blockchain since its launch. It notes that two months after the mainnet, the network executed an industry record of 65.8 million transactions in a single day, surpassing the performance of every other blockchain in history. In addition, in just four months, the network had set a record 6 million active wallets.
The recent decision to relocate tokens represents a key step in accomplishing what the network set out to achieve. In a statement, the foundation noted;
The newly repatriated resources will be aimed towards supporting Sui’s burgeoning ecosystem, including offering grants to developers to build the next generation of decentralized applications on Sui, and supporting Sui’s state-of-the-art DeepBook CLOB, automated market makers and liquid staking and lending protocols on the network,
According to Sui Foundation Managing Director Greg Siourounis, the reallocation will play a major role in the advancement of the network by supporting Sui’s community of builders, developers, and ecosystem participants and further fueling Sui’s ecosystem growth in the future.
Recently, the Sui network announced the launch of zkLogin which enables users access to decentralized applications using the same Web 2 social accounts from providers like Google, Facebook, and Twitch in a way that is more private and secure.
Read More: Sui Network’s zkLogin Revolutionizes Web3 with Google, Twitch, and Facebook Integration
Although the Sui network has celebrated incredible progress, its native token (SUI) has suffered the wrath of the ongoing bearish market. The digital asset marked its all-time high on May 3 after topping $2. It has since lost nearly 80 percent of its value and is at the time of press exchanging for around $0.43.
As the wider market looks forward to the return of the bull market in the coming months, SUI investors are optimistic that the ongoing developments will fuel the asset to retest and possibly surpass its current all-time high.
