This article delves into the intricacies of the token economic model, examining how it balances inflation, burning, and governance. It highlights Sui's strategic token distribution, allocating 40% to the community, 30% to the team, and 30% to investors, fostering decentralization and sustainability. The article further explores the dual mechanism of a 2% annual token supply increase alongside periodic burns to maintain economic equilibrium. It discusses the quarterly token burning mechanism and the impact on supply dynamics, enhancing long-term value. Additionally, it explains how tying voting power to token staking duration refines governance utility. Keywords: token economic model, inflation, burning, governance, token distribution, Sui, deflation, staking.
11/22/2025, 10:04:54 AM