$NS Tokenomics

The $NS Token takes Sui Name Service to the next level by taking the first step to becoming the first truly decentralized Web3 Name Service! The $NS token gives governance over SuiNS to the community by allowing the community to have meaningful input (via their votes) over various aspects of the SuiNS protocol and its ongoing development. Utilizing groundbreaking technology through the Sui blockchain, SuiNS takes governance a step further by completely removing the need for any key or multisig holders.

500,000,000
Total Tokens

Distribution

Treasury57%
Core Contributors28%
Community Airdrop10%
Governance Rewards5%

Treasury

57% of $NS tokens will be allocated to the Community and Foundation Treasuries.

  • 22% of the initial total $NS token supply will be controlled by token holders through governance voting.
  • 35% of the total $NS token supply will be administered by the SuiNS Foundation Ltd (“SuiNS Foundation”).

The SuiNS Foundation will utilize treasury funds to help bootstrap the protocol, and is committed to donating treasury funds not needed for operations back to the community treasury under governance control. The SuiNS Token Treasury is allocated to ensure the long-term viability of the SuiNS protocol. In addition, the SuiNS Foundation has planned future community engagements regarding the use of the treasury!

Governance Rewards

5% of tokens will be allocated towards future governance rewards for $NS token holders who participate in voting.

Community Airdrop

10% of the token supply was reserved for the community, and NFTs representing claims to these tokens were distributed to the community, the most important component of SuiNS! Community members will shape the future of the protocol by voting through governance.

The NFT airdrop was directed primarily toward community members who have taken an active role in the success of the protocol or interacted with SuiNS services in a meaningful way.

Core Contributors

28% of the token supply will be distributed to core contributors and early backers.

Investors and early team members will have a vesting schedule consisting of a 1-year lockup and 3-year linear vest.

Remaining tokens will be dedicated to Mysten Labs.

A Decentralized Future

For the first time a name service’s governance will be fully on-chain. Sui’s next-generation technology allows us to achieve on-chain decentralization through voting.

Your Votes

Other Projects

via Key Holders
Approval

Sui Name Service

via Contract
Upgrading

Upgrading
Packages

Blockchain contracts need to be trusted and transparent. However contracts are software, and software needs improvements, bug fixes, and maintenance. Users need guarantees that the contracts they interact with cannot be modified without their approval. The community should retain the power to make changes to contracts, not a designated set of individuals.

High-level of Transparency

To achieve true decentralization, governance needs to be implemented fully on-chain, such that changes to the contracts (protocol parameters, architectural changes) are submitted and deployed when a vote is approved.

Object-Oriented Design

Most blockchain technologies are limited to using user-owned addresses for contract changes. This means that for a team to fix a bug or change a contract, they need to have one person or a group of people (multisig) make the change. This is not decentralized. With Sui’s object-oriented model, the “upgrade capability” of changing the contract’s code will be an on-chain object. Now instead of a user having to sign-off on a contract change, the privilege to change the contract can be stored directly on-chain itself. This allows for other contracts (such as governance, or a DAO) to utilize the privilege based on some logic, such as if a vote passes.

Unseen Decentralization

SuiNS achieves a level of decentralization not seen in any other name service. By utilizing the aforementioned capabilities provided by the Sui blockchain, SuiNS will be in the control of $NS token holders.

SuiNS Governance Voting & Rewards

All changes to the contract, certain disbursements of protocol treasury, and all other major decisions will be put up through a vote. Initially, the SuiNS Foundation will have the power to make proposals, and each token holder will have the power to vote yes, no or abstain. Users who vote will also receive a reward in $NS tokens. The SuiNS Foundation itself will not be able to vote at the outset. $NS token rewards will be distributed via smart contract to token holders who participate in voting in accordance with the governance and other rules of the protocol. Rewards for voting will come directly from the SuiNS contract.

Voting Mechanics

For each proposal, users will come to the governance voting website on SuiNS, connect their wallet, and use their tokens to vote on the proposal. Voting will work as follows:

When voting tokens must be locked in the voting contract for the duration of the proposal.
Users can select the number of tokens to vote with (lock) and choose Yes, No, or Abstain.
Each proposal will have an associated amount of $NS token rewards distributed to the voters at the end of the proposal based on voting power.
Users will have a number of days to vote on the proposal dictated by the timeframe selected by the proposer.
Initially, a minimum of 10% of the circulating supply of $NS tokens will need to participate in the vote for the passed proposal to be valid.

It is interesting to note that the rewards allocated to each proposal vote is fixed, and will be divided among those who vote on the proposal. So make sure to vote!

Voting Power
  • Each token will be equal to 1 vote.
  • Users will be allowed to stake their tokens (lock) to increase their voting power.
  • $NS tokens can be staked from 1-12 months for additional voting power.
  • Each user’s voting power will increase by 10% each month they have their tokens staked such that:
    • 1 non-staked token will equate to 1 voting power
    • 1 token staked for greater than 1 month will equate to 1.1 voting power
    • 1 token staked for greater than 2 months will equate to 1.21 voting power
    • And so on, and so forth…
  • Rewards will be distributed based on each user's voting power in proportion to its share of the total voting power participating in the proposal.

Reward Distribution

Rewards will be distributed at the end of each proposal which has completed the voting process. The rewards will be distributed based on the total number of votes and the portion provided to each user will be equivalent to their % of total votes for that proposal.

Initially 5% of the community treasury will be dedicated to governance voting rewards and will be distributed at the end of each vote. The amount of tokens that will be distributed per each vote will be determined by the SuiNS Foundation.
For example:
  • Governance Rewards allocated to the vote is currently 50,000 $NS. Meaning 50,000 $NS will be distributed at the end of the next vote.
  • If 2,000 users participated for a total of 453,353 votes (yes, no, and abstain), and user Sean voted with 121 votes (100 tokens locked up for 2 months).
  • Sean would be entitled to:
    (121 / 453,353) * 50,000 = 13.3 $NS tokens as a reward for participating on this particular vote

$NS Token Utility

In addition to the powers imbued upon the $NS token to fully control the SuiNS protocol, the $NS token will be able to be used to purchase a SuiNS name at a discounted price.

These prices will be irrespective of premium pricing which is set to take effect at a future date, allowing token holders to purchase premium names for a static amount of $NS tokens.