Monday, April 15, 2024
Blockchain

Sui Network Launches Liquid Staking Functionality to Enhance Delegated Staking

The Sui Network, a Layer 1 blockchain known for its object-centric data model, announced the launch of a new feature that enables liquid staking as part of its latest network upgrade. This functionality is aimed at supporting liquid staking applications while maintaining the diversity of validators within the network.

A Community-Driven Upgrade

The upgrade is a response to the demands of the Sui community and reflects the network’s commitment to community-driven development. The changes were implemented through Sui Improvement Proposal (SIP) #6, formulated by a proactive team within the community. The approval of SIP #6 by the community was a crucial step in launching this feature on the Sui network.

How Liquid Staking Works on Sui

Unlike other networks that rely on third-party liquid staking protocols, Sui’s approach keeps two aspects of the liquid staking process distinct. The first part involves a third-party Move package issuing a derivative token (e.g., stSUI) in the same amount as the staked token. The second aspect relates to the original token, which remains staked, continuing to secure the network.

Most notably, Sui allows stakers to stake their original tokens with any validator on the network they choose, promoting decentralization and avoiding the concentration of power in one or a few validators.

Benefits and Differentiation

Greg Siourounis, Managing Director of the Sui Foundation, emphasized the importance of this feature, stating, “Adding native support for liquid staking dApps as part of the Sui core technology addresses a clear need voiced by our community members who wanted to participate in securing the Sui Network without sacrificing liquidity.”

Sui’s liquid staking formulation is designed to increase incentives to stake and secure blockchain networks without constraining stakers’ choice of validator. This approach sets Sui apart from other networks and aligns with the broader goal of promoting decentralization.

About Sui Network

Sui is a pioneering Layer 1 blockchain and smart contract platform that aims to make digital asset ownership fast, private, secure, and accessible. Its unique model, based on the Move programming language, offers parallel execution, sub-second finality, and rich on-chain assets.

Sui’s platform supports a wide range of applications with unrivaled speed at low cost.

Image source: Shutterstock

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