Updates from the Sui ecosystem reveal that liquid staking will be activated on the blockchain as the community has approved a proposal asking for the service. The Sui Improvement Proposal (SIP) #6 comes into effect, allowing token holders to stake their tokens while maintaining liquidity.
Liquid staking in crypto refers to making staked tokens more flexible and tradable. It allows users to retain staking benefits while also using or trading the staked tokens in other applications. This enhances liquidity and opens up possibilities for DeFi use cases.
Sui is a smart contract platform known for its scalability and low-latency performance. It uses a permissionless set of validators, similar to miners on other blockchains. Transactions are processed in parallel to increase throughput by adding more resources.
The platform is suitable for latency-sensitive applications like gaming and retail payments. Sui is written in Rust and supports smart contracts in Sui Move, which define operations on assets. The native token, SUI, has a fixed supply and is used for gas payments.
Token holders can participate in a Delegated Proof-of-Stake model by staking their SUI tokens with validators to secure the network and receive rewards.
Sui now allows token holders to support validators with smaller holdings by delegating their tokens. Delegated tokens help validators meet the minimum requirement to become active validators.
Rewards are distributed to token holders who delegated their tokens at the end of each 24-hour epoch, minus a small commission fee paid to the validator.
According to Sui, the new protocol upgrade enables wrapped tokens received from staking to be freely traded, transferred, and used in other applications, promoting liquid staking possibilities and creating financial products.
The upgrade process, driven by community interest, is currently live on Testnet and will soon be integrated into Mainnet, enhancing the staking experience and fostering Sui’s growth in the blockchain ecosystem.