Sui Announces $50+ Million Ecosystem Fund

The foundation behind Sui Network has today announced the inception of a $50+ million ecosystem fund, established to grow the decentralized finance ecosystem on Sui, as reported by Decrypt.

It is further reported that the $51.3 million itself has not been raised from investors looking to gain exposure to Sui and its native start-ups. Instead, the Sui Foundation will retrieve the 117 million SUI tokens from ‘external market makers’, which will then be directed toward the fund.

“In general, 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.” reads Sui’s press release.

The 117 million SUI tokens set to be reclaimed constitute nearly 15% of SUI’s current circulating supply. Though the Sui Foundation has disclaimed that the “redistribution will not affect the circulating supply of SUI”, pundits could be forgiven for intuitive concerns around liquidity depth on exchanges, in the wake of the move. Cryptocurrency tokens are often lent to market makers to provide liquidity of centralized and decentralized exchanges.