#sui The term "tokenomics" is a combination of two words, “token” and “economics”, that is generally used to describe the economic principles and behaviors of a blockchain.

The “token” part of the tokenomics portmanteau refers to the native token (or native coin) of the blockchain. On Sui, the native coin is SUI, which acts as the currency of the network. SUI also pays for the computational cost of transactions (gas fees) and storage on the network

Sui uses a proof-of-stake (PoS) consensus mechanism. This means that validators (entities that validate transactions) lock up a certain amount of SUI as collateral (stake). They then earn rewards for processing operations. Users of the network hold their own SUI, which they can delegate to the validators of their choice as part of the validators' stakes. In so doing, the validators reward users based on the amount of SUI they delegate. Users are free to withdraw their SUI or to change their selected validator when the epoch changes.