The Sui community has been proposing the official launch of the liquid staking function, and now through the SIP process , the protocol has been upgraded to enable this function .
Sui uses Delegated Proof-of-Stake (DPoS) to select and reward validators responsible for operating the network. In order to ensure network security, verification nodes obtain pledge rewards by staking SUI tokens. To participate in staking, operators must “stake” a certain amount of tokens to validators. Regardless of the number of tokens held, any holder can support them by delegating tokens to validators they deem to be good performers. These delegated tokens help validators meet the minimum quantity requirement (30 million SUIs) to become a validator. All token holders entrusted to the validator staking pool will be rewarded, minus a small commission fee paid to the validator operator, and the reward will be issued at the end of each epoch (24 hours). Individual token holders will receive their share of rewards when unstaking. For details about SUI staking and how to participate in staking, please read this article .
Currently, when a token is staked, the token holder is given a wrapping token representing the stake. However, these wrapped tokens cannot be traded or transferred, effectively losing their liquidity. These tokens can be unstaked at any time and then re-staked to a new validator or returned to the owner. This reduces flexibility for individual users.
The upgraded protocol now allows the encapsulation token obtained after staking to be traded, transferred, and encapsulated into another object. Adding this feature can provide developers with liquidity staking, and at the same time create financial product applications that use token liquidity staking.
Sui Improves the Proposal Process
Sui Improvement Proposals (SIPs) are the most effective and efficient mechanism for the Sui community to influence the protocol. Many community members are interested in upgrading staking to allow wrapped tokens to be traded, transferred, and owned by other objects. There is a team that has volunteered to write a proposal on how to implement this feature and submit it to the SIP repository . Given the level of community interest and enthusiasm for this feature, the proposal was expedited for approval and the upgrade process was made faster, while still allowing the community to contribute and provide input.
Currently, the final upgrade has been released on testnet , and assuming all testing and compatibility issues are satisfied, it will be added to the mainnet with the next upgrade.
If you need it, start applying liquid staking to your app now!
About Sui Network
Sui is an L1 public chain redesigned and constructed based on first principles, aiming to provide creators and developers with a development platform capable of hosting the next billion users in Web3. Applications on Sui are based on the Move smart contract language and are horizontally scalable, allowing developers to support a wide range of application development quickly and at low cost. For more information: https://linktr.ee/sui_apac
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