Decentralization is one of the key elements of blockchain technology. Projects hand over control and decision-making to a distributed network. There’s no longer a centralized entity in charge. SuiNS or the Sui Name Service is about to restructure as a decentralized protocol. During the course of this year, it allows the SuiNS community to govern the protocol. $NS token holders can take part in the governance of the Sui Name Service. It will launch its native $NS token later this year.
So, let’s take a closer look at what SuiNS has coming up.
What Is SuiNS or the Sui Name Service?
Name service protocols like SuiNS make crypto simpler. In crypto, your wallet address is, to a degree, also your ID. However, this ID is a long string of letters and numbers. For example, Sui wallet addresses include 66 characters. For example,
0ef47747a691e02fec0876541ea924e6a214e7e0712e2f6cef62e7899819a6c7ef
This string of numbers and letters is impossible to remember. So, SuiNS lets you buy a shorter name. Like social media names. This starts from 3 characters to 5 or more. A 3-character name goes for 500 $SUI, 4 characters are 100 $SUI, and 5 or more characters sets you back 20 $SUI. These are prices for 1-year periods.
You can change this into your own name or another, easy-to-remember name. For example, Peter.Sui or only @Peter. That’s easy to remember and human-readable. For more background on the Sui Name Service, read our dedicated article.
Source: SuiNS website
The $NS Token
SuiNS is about to launch its native $NS token later this year. Holders of this $NS token can take part in governance. As a holder, you can vote on proposals made by the SuiNS Foundation. Since this Foundation will also hold the $NS treasury, it won’t vote on its proposals. More on this in a moment.
So, as an $NS token holder, you can control and influence the future direction of the protocol. An on-chain voting mechanism will be in place. Votes could relate to cases, like, for example,
- Protocol development and features.
- Managing how to use the SuiNS treasury.
- Overseeing strategic initiatives.
Furthermore, as a holder, you will have reduced rates for buying more names.
$NS Token Distribution
The $NS token distribution looks solid. The SuiNS Foundation will look after the $NS treasury. This treasury handles the long-term viability and sustainability of the platform.
- Treasury — 57%. The treasury can fund grants, or it can use the funds for support or maintenance. In short, any operation that keeps the platform going. The SuiNS Foundation can’t use tokens in the treasury for voting. This keeps the voting process clean and fair.
- Core contributors and early backers — 28%.
- Active community members — 10%. Interact in a meaningful and positive way with the platform.
- Future governance rewards — 5%. For those who take an active role in governance.
However, there’s currently no information available on the max supply of the $NS token.
Weighted Votes
There will be a weighted voting system in place. The number of tokens you hold plays a key part in this setup. However, you also can lock your $NS tokens up. This offers extra weighting.
Once voting on a proposal is completed, there will be a distribution of rewards. As already explained, depending on your proportion of total votes.
Another step of this transition process involved setting up a forum. This allows for discussions of various governance aspects. For example, user questions or the protocol’s direction.
To sum up, SuiNS is evolving as a decentralized public good. It puts the control and future direction of SuiNS in the hands of its users. Look out for the $NS token launch. Once you become a $NS token holder, you can take part in the voting process. Actively taking part in governance, will also earn you rewards.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. This article has been sponsored by Sui.
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