Quick facts
- 75% of SUI is staked on 100+ validators, with an SRR of ~2%
- Sui epochs last 24 hours for frequent reward distribution, with a 24 hour unbonding period
- SUI has a fixed maximum supply of 10 billion tokens, giving it deflationary tokenomics
- Slashing means missed rewards, but no loss of principal
- Figment has never been slashed on SUI
Sui throughout 2025 shows sustained on-chain activity and a vibrant staking economy. Through the first half of the year, daily active addresses averaged around ~1M and spiked as high as ~2.5M, while the network routinely processed 8–10M transaction blocks per day and logged ~2.7B transactions in the first half of the year alone.
This growth has been matched by an expanding staking economy. Roughly three-quarters of all SUI is staked across more than 100 validators, reflecting high participation and a broad base of participation. With Sui’s 24-hour epoch structure, rewards are distributed daily, making staking approachable for both retail participants and institutions. Combined with user-friendly features like fast unbonding and liquid staking options, Sui’s staking system has become a cornerstone of its ecosystem, aligning token holders with the network’s long-term success.
Sui’s DeFi ecosystem has surpassed $2 billion in TVL, bolstered by lending protocols, decentralized exchanges, and the rapid adoption of liquid staking derivatives. This expansion has fueled onchain demand and fee generation, creating a reinforcing cycle: more usage drives more fees, more fees amplify Sui’s deflationary design, and higher staking participation strengthens network security.
Sui is Deflationary by Design
Sui’s tokenomics are intentionally crafted to be deflationary over time.
First, SUI has a fixed maximum supply of 10 billion tokens, meaning no new SUI can be minted beyond this cap.
Second, Sui’s storage fund mechanism plays a central role. Every transaction that adds or changes on-chain data includes a storage fee, which is collected into the storage fund. This fund is staked to generate rewards that continuously compensate validators for storing data indefinitely. When data is deleted, users receive a partial rebate, but the net effect is that tokens are locked or effectively burned, reducing the circulating supply over time.
The result: as network usage grows and more data is stored, more SUI gets removed from circulation. The storage fund dynamically absorbs tokens tied to growing demand for storage, giving SUI a deflationary edge built directly into its economic model.
Staking Sui
Staking on Sui uses a Delegated Proof-of-Stake (DPoS) model. Holders can delegate SUI to validators like Figment to participate in consensus and earn rewards.
The incentive mechanics are encoded such that both staking rewards and storage fund contributions count toward total stake, and those rewards are distributed at every epoch based on stake size and fee revenue contributions.
One of the most compelling features for stakers via Figment is that Sui offers a ~2% SRR, and a 24 hour unbonding period, offering an ideal staking environment for institutional customers.
Slashing on Sui
Unlike many Proof-of-Stake networks where misbehavior can lead to the destruction of some or all staked tokens, Sui employs a more forgiving slashing model.
Using a “Tallying rule”, validators monitor each other each epoch. If a validator is found faulty, by downtime or equivocation, the rewards for that epoch are forfeited, but crucially, the validator’s (and delegators’) principal remains intact. No tokens are burned, only the reward is lost for that epoch. This approach effectively penalizes underperformance without risking irreversible loss for users.
How Figment Mitigates Slashing on Sui
Figment’s staking infrastructure is built around stability, transparency, and operational excellence following our proven “safety over liveness” principle. In the SUI ecosystem, Figment has maintained a perfect slashing record, demonstrating our commitment to secure validator operations and institutional-grade key management practices.
Unlike other networks, Sui’s slashing mechanism only affects epoch rewards, not the principal stake. Slashing requires social consensus through validator voting rather than automatic penalties, making the risk profile significantly lower than other networks. Figment applies standard security protocols including zero-trust key storage and comprehensive monitoring to ensure optimal validator performance and avoid the social consensus scenarios that could trigger reward slashing.
In the Sui ecosystem, Figment has never been slashed, a testament to our 24/7 monitoring, validator uptime commitments, and institutional-grade key management practices. Figment’s validators are housed in physically protected data centers with redundancy and advanced security protocols, mitigating risks of downtime or misbehavior that could trigger slashing events.
Infrastructure Excellence
- Physically protected data centers with redundancy and advanced security protocols
- 24/7 monitoring with comprehensive alerting systems
- Multi-layered anti-slashing protection adapted from our proven infrastructure design
- Zero double-signing incidents across all supported protocols to date
Looking Forward
2025 has cemented Sui as a high-performance, widely adopted layer-1 blockchain with robust on-chain activity, explosive user growth, and innovative tokenomics that make deflation a feature, not a bug.
As Sui continues to attract new users, launch DeFi and NFT dApps, and expand its ecosystem, the deflationary mechanisms built into its design will only become more potent.
If you’re looking for a secure, institutional-grade way to participate in Sui’s staking economy, start staking SUI with Figment today. Enjoy competitive rewards and confidence in uptime and performance, backed by infrastructure you can trust.
Ready to stake SUI and start earning rewards? Visit the Figment App to delegate your SUI tokens in just a few clicks.
