In May 2023, Sui’s mainnet launched into a skeptical market. FTX had collapsed, its affiliated fund was scrambling to buy back tokens, and the bear market dragged SUI’s price from $1.70 down to $0.40. There was no traditional airdrop—only a lottery-based allocation—sparking community backlash with chants of “No airdrop, no community” and accusations of fraud.
Fast forward two years: Sui has emerged as one of the most dynamic new public blockchains in the crypto cycle. With its governance token SUI ranking sixth in fully diluted valuation (FDV) among non-stablecoin assets—trailing only BTC, ETH, XRP, SOL, and BNB—Sui has evolved from a doubted “VC chain” into a legitimate ecosystem powerhouse.
But what changed? How did Sui turn early skepticism into sustained momentum and widespread adoption?
The DeFi Foundation: Building Trust Through Incentives
Sui now boasts a DeFi Total Value Locked (TVL) of $1.78 billion, placing it ninth among all blockchains—surpassing Avalanche and even Aptos, which launched earlier. Yet this growth didn’t happen overnight.
Initially, activity was sluggish. Like many venture-backed chains, Sui struggled to attract users post-launch. The solution? Massive, user-friendly incentive campaigns.
Starting in July 2023, Mysten Labs—the core development team behind Sui—launched three consecutive Bullshark Quests. Each phase distributed 5 million SUI tokens to participants who completed on-chain tasks, totaling 15 million SUI “dropped” across the ecosystem.
Crucially, these quests followed an inclusive “everyone gets something” model, prioritizing broad distribution over winner-takes-all dynamics. While top performers earned more, even mid-tier and casual users received meaningful rewards. This approach attracted retail investors, airdrop hunters, and builders alike, rapidly expanding Sui’s user base.
This early phase established Sui’s reputation for being fair, accessible, and community-oriented—a stark contrast to the extractive models seen elsewhere.
Tokenomics That Work: Aligning Price and Protocol Growth
Beyond user acquisition, Sui pioneered aggressive DeFi protocol subsidies early in the cycle. Protocols like Aftermath offered stablecoin LPs annual yields exceeding 110%, drawing significant capital inflows.
But high yields alone aren’t enough. Many chains—Aptos, Starknet, Sei, ZKsync—tried similar strategies but failed to sustain growth. Why?
The key difference lies in token price trajectory. On other networks, weak price performance led whales to immediately sell their rewards (“farm, dump, repeat”), creating relentless sell pressure. This forced protocols to increase subsidies just to maintain yield levels—a vicious cycle.
Sui broke this pattern. Its token incentives were deployed when SUI was low in price. As confidence grew, so did the token value. Higher prices meant users were less inclined to dump rewards immediately. Instead, they held, reinvested, or compounded—turning yield farming into long-term participation.
Imagine earning 100% APY on a stablecoin pool—if the underlying token then 3x’d in value, your realized return could exceed 300%.
This alignment between token appreciation and protocol growth created a powerful flywheel: rising prices reduced sell pressure, lowered subsidy needs, and boosted TVL—all reinforcing each other.
Developer Momentum: Speed Meets Quality
One often-overlooked advantage? Developer efficiency.
Mysten Labs co-founder Evan Cheng’s Taiwanese heritage helped catalyze strong ties with Chinese-speaking developers. As a result, major protocols like Scallop (lending), Typus (options), and Bucket (stablecoins) are built by high-output teams known for rapid iteration and clean code.
Compared to slower-moving Western teams, these builders delivered functional products quickly—accelerating ecosystem maturity.
This operational edge gave Sui a critical head start during the competitive race for mindshare and liquidity.
Creating Real Wealth: The Power of Meaningful Airdrops
A blockchain’s success isn’t measured solely by metrics—it’s defined by whether it creates real wealth for real users.
Early attempts at wealth distribution were underwhelming. When Scallop and Navi launched their tokens, many users received only small payouts—sometimes just enough for “a hot pot meal,” as one participant joked. Meanwhile, Navi infamously delayed its airdrop for over a year, leaving loyal users frustrated.
But then came the game-changer: Mysten Labs stepped in as both builder and benefactor.
Rather than relying solely on third-party projects, the core team launched flagship protocols—and backed them with massive community rewards.
Deepbook – The Liquidity Hub
Launched as Sui’s native CLOB (central limit order book), Deepbook quickly achieved a peak FDV over $3 billion. On October 14, 2024, DEEP launched with **10% of tokens allocated to users**, delivering up to **$300 million in value** across over 100,000 addresses.
Sui Name Service (SuiNS)
Solving the human-readable address problem, SuiNS also integrates deeply with other Mysten projects like Walrus. On November 14, 2024, it airdropped 10% of NS tokens, worth up to $30 million at peak.
Walrus – Decentralized Storage
Walrus introduced a data availability layer that could eventually make SUI deflationary. After raising $140 million in funding, WAL launched on March 27, 2025, with **4% of tokens going to active users and testers**, distributing around **$120 million** across more than 120,000 wallets—with another 6% reserved for future drops.
Compare this to Aptos’ Amnis—a comparable staking project—that only airdropped to the top 10,000 users with a mere $5M circulating supply. Sui’s scale of wealth creation was unmatched.
The Psychology of Expectation: Turning Hype into Action
Sui mastered the art of anticipation-driven engagement. Founders subtly hinted at upcoming airdrops through social media cues and developer notes—what some called “coded signals.” Users responded by actively interacting with testnets and dApps.
When those rewards materialized—as they did with NS and WAL—the feedback loop strengthened trust and loyalty.
From “No Airdrop, No Community” to “No Community, No Airdrop,” Sui flipped the script: participation now precedes reward—and rewards validate participation.
Strategic Control & Ecosystem Synergy
Another masterstroke? Controlled token circulation.
None of the major ecosystem tokens (DEEP, NS, WAL) are listed on Binance—meaning Mysten Labs retains influence over distribution timing. Combined with low initial circulating supplies and high yield incentives on DeFi platforms, these tokens remain largely locked.
This allows for effective market cap management, preventing dumps and enabling sustained price discovery. It also amplifies perceived wealth creation when tokens finally list.
👉 See how top-tier ecosystems manage token distribution for maximum impact.
Learning from Solana: What Works in This Cycle?
Sui shares striking similarities with Solana—the two standout performers of the era.
Both chains understood that price momentum drives fundamentals, not the other way around. A rising token attracts attention, capital, and developers—even before TVL or dApp count justifies it.
They also embraced Web3 hardware as engagement tools. While Solana launched Saga phone and Seeker wallet, Sui unveiled SuiPlay0X1—a Web3 gaming console priced at $599. Pre-orders sold out within days.
And just like Solana users bought hardware for potential airdrops, SuiPlay owners have already received commitments from over 10 ecosystem projects offering future rewards.
Community First: Unity Through Incentives
Sui’s community stands out for its cohesion.
- Exclusive builder agreements: Projects receiving grants must commit exclusively to Sui, reducing multi-chain fragmentation.
- Mutual airdrops: Protocols frequently reward users of other Sui dApps—fostering cross-project support.
- Shared identity: Whether on Discord or X (Twitter), users proudly identify as “Sui citizens.”
This sense of shared destiny turns users into evangelists.
Frequently Asked Questions
Q: Did Sui have an initial user airdrop at launch?
A: No. At mainnet launch, Sui did not conduct a traditional airdrop. Instead, it used a lottery system for token purchase access, which sparked criticism. However, it later compensated through extensive ecosystem-wide reward programs.
Q: How can I qualify for future Sui ecosystem airdrops?
A: Engage with official quests on platforms like Mysticeti or participate in testnets and early protocol interactions. Consistent on-chain activity increases eligibility chances.
Q: Are Sui’s high DeFi yields sustainable?
A: Early yields were subsidized but declined as the ecosystem matured. Current returns are more market-aligned while still competitive due to strong protocol incentives.
Q: What makes Sui different from other Move-based chains like Aptos?
A: Sui differentiates through faster transaction finality (parallel execution), stronger developer support from Mysten Labs, and more generous community reward structures.
Q: Is Sui eco-friendly?
A: Yes. As a proof-of-stake blockchain using the Move language and Narwhal-Bullshark consensus, Sui is energy-efficient compared to proof-of-work networks.
Q: Can I run a Sui node?
A: Absolutely. Running a full node supports network decentralization and can qualify you for certain ecosystem incentives or future governance rights.
With strategic vision, disciplined execution, and an unmatched focus on user wealth creation, Sui has rewritten the playbook for new blockchain adoption. Two years in, it's no longer chasing Solana—it's building its own legacy.
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