As the world of cryptocurrency continues to evolve and expand, one network that is capturing attention with its strategic operations is the Sui Network (SUI). Known for its robust tokenomics model, Sui is preparing to unlock a staggering $150 million worth of its native tokens on April 1. This significant release forms part of the network’s monthly unlock schedule, designed to increase the circulation of SUI tokens and diversify investors’ holdings.
# Sui Network’s Token Release Strategy
Finbold has been consistently tracking, analyzing, and reporting these scheduled ‘cliff unlocks’ of Sui, powered by data from Tokenomist. For instance, December 2024 saw the single largest unlock in U.S. dollar value by Sui, with $224 million worth of 64.19 million tokens released. Subsequently, January 2025 had an unlock of the same number of tokens, but their value had increased to $274 million.
Despite a notable decrease to $250 million in February and further to $181.67 million in March due to a market downturn, the number of SUI tokens unlocked remained consistent. This trend is expected to continue now with 64.2 million SUI tokens set to be unlocked on April 1, having a present nominal value of $147 million. This move would potentially increase Sui’s circulating supply and market capitalization by 2.1%.
## More Than $445 Million Worth of Token Unlocks Incoming
In the coming week, data from Tokenomist reveals that crypto networks are set to unlock tokens worth a whopping $445.97 million. Projects under the spotlight besides SUI include Wormhole (W) and Ethena (ENA), set to unlock $117.30 million and $76.41 million respectively. But the figure from SUI remains the highest, accounting for one-third of all upcoming releases on Tokenomist. Meanwhile, Ripple’s XRP holds the record for the largest monthly unlocks in USD value, with over $2.6 billion in XRP lined up.
## Impact of SUI Tokenomics on the Market
The distribution of SUI tokens is meticulously planned. Investors from Sui Series A and B receive over 19 million SUI each, accounting for 61% of the total. Mysten Labs secures the remaining 25.03 million SUI, with 12.63 million reserved for the community, 10.34 million for early contributors, and 2.07 million for its treasury.
So far, the Sui Network has unlocked 3.2 billion SUI, representing 32% of its maximum capped supply of 10 billion SUI. Priced at $2.29 per token, the network has a fully diluted value (FDV) of $23 billion. This places SUI, with its current capitalization of $7.3 billion, in the league of Cardano (ADA) and Tron (TRX), both with market caps in the vicinity of $23 billion.
However, it’s essential to note that each token unlock increases potential selling pressure and inflates the market cap artificially. To maintain its prices, an increase in supply must be accompanied by a proportionate increment in demand, as per economic principles. In a promising development, Adeniyi Abiodun announced that Sui Network will soon host the world’s “largest consumer platform”.
From a conservative standpoint, Sui’s unique tokenomics allows Mysten Labs and Series A/B investors to stake their locked tokens. This results in asymmetric liquid rewards against other staking investors, giving these entities the flexibility to either sell these rewards or compound their staking positions over time.
### FAQs
Is the Sui Network’s token unlock strategy reliable?
The Sui Network employs a unique and strategic token unlock schedule to increase the circulation of SUI tokens and diversify investors’ holdings. The consistency and transparency in their unlock schedule have been praised by investors, making it a reliable strategy. However, like any investment, it’s essential to conduct proper due diligence.
How does Sui’s tokenomics impact its market value?
Sui Network’s tokenomics model has a profound impact on its market value. The regular unlocking of tokens increases the circulating supply of SUI, which could inflate the market cap artificially. This could potentially put downward pressure on the price of SUI tokens. However, strategic initiatives by Sui to increase demand can help maintain balanced prices.
What differentiates Sui Network’s operations from other crypto networks?
Sui Network stands out for its robust tokenomics model and strategic token unlock schedule. Its ability to consistently unlock a significant number of tokens and maintain stability in the market has garnered attention. Moreover, its plans to host the world’s largest consumer platform show initiative towards increased demand generation.
