The Sui Smart Contracts Platform is a cutting-edge blockchain system that is designed to be environmentally friendly, cost-efficient, high-throughput, and low-latency. The platform is built on the frontier of distributed systems, cryptography, and programming languages and is capable of meeting the requirements needed to serve billions of users across a wide range of web3 applications.

Sui's tokenomics, or economics and incentives, have been carefully designed to align incentives across the various entities participating in the Sui ecosystem. The overarching goal is to create an economic system that is at par with its engineering design so that the smart contracts platform delivers a flourishing economy with billions of participants.

The Sui economy is characterized by three main sets of participants: users, SUI token holders, and validators. Users submit transactions to the Sui platform to create, mutate, and transfer digital assets or interact with smart contracts. SUI token holders have the option of delegating their tokens to validators and participating in the proof-of-stake mechanism. Validators manage transaction processing and execution on the Sui platform.

The Sui economy has five core components: the SUI token, gas fees, the storage fund, the proof-of-stake mechanism, and on-chain voting. The SUI token is the Sui platform's native asset and serves four purposes: it can be staked to participate in the proof-of-stake mechanism, it is the asset denomination required for paying gas fees, it is a versatile and liquid asset underpinning the whole Sui economy, and it plays an important governance role by acting as a right to participate in on-chain voting.

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 gas pricing mechanism delivers low and predictable transaction fees and incentivizes validators to optimize their transaction processing operations. Sui users pay separate fees for execution and storage, with execution fees determined through a three-step process operating repeatedly across Sui epochs.

Sui also includes an efficient and sustainable economic mechanism for funding data storage through its storage fund. Users pay fees upfront for both computation and storage, with the storage fees deposited into a storage fund used to adjust the future share of stake rewards distributed to validators. The storage fund never distributes rewards directly out of its principal and is designed to be viable in the long-run and to fund storage costs indefinitely.

The Sui platform relies on delegated proof-of-stake to determine the set of validators who process transactions. Stake rewards are distributed at the end of each epoch, taking into account the storage fund, and validators receive more stake rewards relative to SUI delegators whenever Sui's on-chain data storage requirements are high.

Protocol upgrades and other Sui governance changes are passed through on-chain voting proposals, with SUI token holders having the ability to participate in this process.

The Sui Smart Contracts Platform is a cutting-edge blockchain system that is designed to be environmentally friendly, cost-efficient, high-throughput, and low-latency. The platform is built on the frontier of distributed systems, cryptography, and programming languages and is capable of meeting the requirements needed to serve billions of users across a wide range of web3 applications.

Sui's tokenomics, or economics and incentives, have been carefully designed to align incentives across the various entities participating in the Sui ecosystem. The overarching goal is to create an economic system that is at par with its engineering design so that the smart contracts platform delivers a flourishing economy with billions of participants.

The Sui economy is characterized by three main sets of participants: users, SUI token holders, and validators. Users submit transactions to the Sui platform to create, mutate, and transfer digital assets or interact with smart contracts. SUI token holders have the option of delegating their tokens to validators and participating in the proof-of-stake mechanism. Validators manage transaction processing and execution on the Sui platform.

The Sui economy has five core components: the SUI token, gas fees, the storage fund, the proof-of-stake mechanism, and on-chain voting. The SUI token is the Sui platform's native asset and serves four purposes: it can be staked to participate in the proof-of-stake mechanism, it is the asset denomination required for paying gas fees, it is a versatile and liquid asset underpinning the whole Sui economy, and it plays an important governance role by acting as a right to participate in on-chain voting.

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 gas pricing mechanism delivers low and predictable transaction fees and incentivizes validators to optimize their transaction processing operations. Sui users pay separate fees for execution and storage, with execution fees determined through a three-step process operating repeatedly across Sui epochs.

Sui also includes an efficient and sustainable economic mechanism for funding data storage through its storage fund. Users pay fees upfront for both computation and storage, with the storage fees deposited into a storage fund used to adjust the future share of stake rewards distributed to validators. The storage fund never distributes rewards directly out of its principal and is designed to be viable in the long-run and to fund storage costs indefinitely.

The Sui platform relies on delegated proof-of-stake to determine the set of validators who process transactions. Stake rewards are distributed at the end of each epoch, taking into account the storage fund, and validators receive more stake rewards relative to SUI delegators whenever Sui's on-chain data storage requirements are high.

Protocol upgrades and other Sui governance changes are passed through on-chain voting proposals, with SUI token holders having the ability to participate in this process.