Announcing the Decentralization of SuiNS

Sui's primary name service, SuiNS, takes an important step towards openness and accessibility by restructuring as a decentralized protocol.

SuiNS begins the path to decentralization this year by allowing the community to govern the direction of the protocol by way of the SuiNS token, $NS. Using the $NS token, the community will be able to take an active role in determining the path of the SuiNS protocol.

What is SuiNS?

SuiNS allows Sui users to purchase simple and understandable names, similar to those used in social media, and associate them with Sui addresses. These names replace the cumbersome strings of numbers and letters offered by default, with intuitive and memorable names.

SuiNS' removal of complex account names creates a better user experience throughout the Sui ecosystem, allowing people to interact with apps with ease and confidence.

Name services like SuiNS work best as public goods and SuiNS is ready to evolve as a decentralized public good. A public good benefits a community as a whole, moving beyond individual interests and maximizing support for the community at large. Decentralization stands as a fundamental principle within this vision. SuiNS takes a step towards becoming a true public good by relinquishing central control for a community-based model 

The transition to a decentralized model will be achieved through the community’s ownership and governance rights, facilitated by $NS. This community-driven approach ensures that the control and future direction of SuiNS are in the hands of its users, promoting a fair and inclusive environment.

$NS Token

The $NS token’s primary function revolves around governance, allowing stakeholders to shape protocol decisions through onchain voting mechanisms. Governance of SuiNS will involve decisions regarding protocol development and features, managing how the SuiNS treasury is used, and overseeing strategic initiatives. In addition, $NS tokens will be given additional utility to allow holders to purchase names at a discounted price.

Distribution

The treasury is responsible for the long-term viability and sustainability of the SuiNS platform and will be allocated 57 percent of all tokens. Treasury-held tokens will be used to fund grants for additional features, support, maintenance, and other necessary operations for the SuiNS platform. Crucial to the decentralization of SuiNS, tokens held by the treasury will not be used for governance voting rights of the SuiNS protocol.

Additionally, 28 percent of $NS tokens will be allocated to core contributors and early backers and 10 percent will be distributed to community members who have interacted with the SuiNS protocol in a meaningful way. This structured approach ensures a balanced and sustainable distribution of tokens to support the ecosystem's growth and development. The final 5 percent of $NS tokens will be allocated towards future governance rewards for those actively participating in SuiNS governance.

Governance

Once the protocol is released, major decisions will be put to a vote, led by proposals from the SuiNS Foundation. Token holders can vote on these proposals, although the SuiNS Foundation will not be able to vote with treasury tokens at the outset. To encourage participation and secure the network's longevity, rewards will be provided to those actively participating in the governance of SuiNS.

Voting weights will be determined by the number of tokens a user holds, with an optional lockup process offering additional weighting. This system aligns users' commitment and the associated risks, providing $NS rewards for their participation in governance. Rewards will be distributed at the end of each completed proposal, based on the user's proportion of total votes.

Looking ahead

With the community leading the way, SuiNS is set to reshape the name services landscape with improved accessibility, security, and utility. Next steps involve the establishment of a forum for discussion of various governance aspects of the SuiNS protocol, with a specific focus on addressing user questions and fostering discussions around the protocol’s trajectory. 

The decentralization of SuiNS represents more than just a technical milestone, it embodies a paradigm shift towards a more inclusive and resilient digital infrastructure. 

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