Sui Space Time 6 — Tokenomics, Quests, Money Market

This week we delve into the complex and compelling world of tokenomics as explained by Mysten’s Chief Economist. Along with that, we explore Bullshark Quests 2 and take a tour of Scallop, a top money market on Sui that’s making waves in the DeFi sector.

Tokenomics by Mysten Chief Economist

What is Tokenomics

It is the balance of incentives for:

• Validators (earn from gas fees, want high fees)
• Token Holders (earn from staking and price increase)
• Users (want low gas fees)

Overall, it’s about setting gas fees just right.

Sui Gas Price

Sui scales horizontally, meaning that when demand is high, validators can increase block space allowing gas fees to remain low. During high activity on-chain, instead of processing the same amount of transactions but with high fees (like on other blockchains), validators process more tx at the same price, thus earning more while preserving a good UX.

The reference gas price is decided by validators that compete to propose the best price (gas fees are never too high or too low). Another innovation is the storage fund. Basically, users pay storage fees upfront instead of passing on the cost to future users. With this, deleting data is incentivized (you get back what you paid for storing the data).

Deflation or Inflation

This is not just about the token supply but the level of activity on-chain in relation to the number of tokens available. If the activity increases faster than the supply, gas price will decrease (deflation). On the contrary, if there are plenty of tokens, the gas prices will increase (inflation).

$SUI supply is capped for transparency and predictability. Nobody will be able to influence the monetary rule.

Scallop

Bullshark Quests 2 are live and it is the perfect opportunity to discover DeFi protocols on Sui. Here is a walkthrough to complete missions on Scallop, a top Money Market on Sui which provide many cool features and earned several prizes for it!

Let’s start by visiting the dapp and connecting your wallet. By doing so you will see your balances appear in the tab on the left in addition to the general stats related to Scallop.

In the first tab you are able to provide liquidity by lending your assets. Click supply to lend the amount of Coins you wish and start generate yield. Thanks to liquidity providers, users can borrow assets. And to be sure that the users will give back what they borrowed, the protocol needs a guarantee: a collateral. By depositing a collateral in the 2nd tab you will be able to borrow a certain % of the amount in the 3rd tab.

Next there are Scallop Tools v1. This interface enables you to group many transactions into one, lowering gas fees and improving speed. Be cautious with object dumping as it will destroy the objects you input.

There is also a swap menu that will directly send you on umi_protocol CetusProtocol Turbos_finance KriyaDEX dApps so you can quickly swap Coins.

Wormhole is integrated to Scallop allowing you to rapidly bridge assets from/to Ethereum, BNB Chain, Polygon, Avalanche, Fantom, Celo, Moonbeam, Solana and Aptos. Portal and CelerNetwork bridges are links only.

News in Bulk

Bullshark Quests 2 Points

Mysten Labs announced how users earn points by participating to the Quests and what the rewards are here. Cetus Protocol has been added to the campaign and Turbos finance relaunched.

Builder House

Registrations are open for next month builder house in Singapore! More details on this page.

Mofa Wallet

This is a personal discovery. Mofa Labs develops an open source mobile wallet for Sui & Aptos and this is the most fluid and fastest wallet I’ve ever used so try it! (Android only at the moment)

More

• SuiPad 2.0 is live
• Sui broke the record of the highest number of transactions recorded in a single day on any blockchain
• Releap IDO started on SuiPad (to be continued on 4 other launchpads)
• Users can now swap tokens directly in Suiet wallet
• High APRs have been reported on several DeFi protocols

With a record-breaking number of transactions and high APRs on several DeFi protocols, it’s clear that Sui continues to redefine what’s possible in the Web3 world. As always, continue exploring, continue learning, and stay tuned for more updates in our next edition.

Find all my links on blockrunner.page and follow BL0CKRUNNER on Twitter for much more content on Sui and Web3 globally.