Sui Uses Stablecoin Earnings to Buy Back SUI and Distribute to Ecosystem, No Destruction of Tokens, Just Delayed Release
Sui's buyback is not a token destruction but uses the earnings from stablecoins like USDsui and suiUSDe to purchase SUI in the market, which is then distributed to DeFi, validator nodes, and ecosystem participants.
Official data shows a total of approximately 282,600 SUI have been bought back, corresponding to about $776,000 in earnings, with an average historical buyback price of about $2.75; this creates real buying pressure, but is still small relative to the billions in circulation, and the bought tokens are not destroyed, potentially serving as incentives to re-enter the market later.
The event-driven internal ecosystem cycle is strengthened, benefiting stablecoin growth and long-term holders, while short-term price support is limited and transparency is under pressure.
Source: Public Information
ABAB AI Insight
Sui is bringing traditional reserve earnings back into the network through its native stablecoin, distinguishing itself from models like Tether that retain profits, aiming to convert external dollar earnings into sustained demand for its chain's tokens.
In terms of resource mobilization, the foundation executes public market buybacks and distributes incentives daily using earnings, motivated by forming a flywheel of "usage growth → floating supply increase → earnings expansion → more buybacks," while reducing reliance on pure token issuance incentives.
Similar paths can be seen in other L1 attempts to support token demand with protocol revenue, currently in the early stages with stablecoin scale still small and buyback power limited.
Essentially, this represents a restructuring of the industry chain: shifting stablecoin floating earnings from issuers to the public chain ecosystem, with the mechanism internalizing external asset earnings as a tool for capital return to the chain.
ABAB News · Cognitive Law
Real buying pressure does not equal effective support
Non-destroyed buybacks are merely delayed releases
The size of the flywheel depends on the scale of stablecoins