Author: Frank, PANews

While the token model was questioned by the founder of Cyber ​​Capital, Sui suddenly rose in terms of data. On May 3, the number of transactions on Sui mainnet exceeded 40 million, a 20-fold increase from 1.85 million on May 1. This data exceeded active public chains including Solana. In the following days, the number of transactions on Sui mainnet continued to remain above 30 million, continuing to lead all public chains.

Does the increase in data mean that Sui has truly experienced an explosion in its ecosystem?

SPAM has generated over 100 million transactions

After an investigation by PANews, it was found that Sui's data surge was mainly due to a SPAM (spam) project in the ecosystem that was used to increase transaction volume and mine. The project was officially launched on May 2, and brought 3,800 transactions to Sui on the first day. As of May 8, the project had generated a total of 147 million transactions, contributing about $120,000 in fees to the main network.

In addition to transaction volume, SPAM also brought a significant increase in the number of active addresses for Sui. On April 29, Sui's daily active addresses were approximately 12,000. By May 6, this number had increased to 73,000.

Obviously, SPAM and Sui are in a mutually beneficial cooperation. The project was initiated by Juzy, the founder of Polymedia. On May 5, Sui official retweeted two introductions about SPAM, which brought a wave of traffic to SPAM. Correspondingly, SPAM's frequent volume-boosting behavior also pushed Sui's transaction volume and TPS to a new height.

In the subsequent discussion about TPS breaking through 800+, Sui officials stated that Sui can fully support the TPS required by SPAM.

The more users dig, the more they lose

However, in the SPAM mining war, the biggest winners may only be Sui and RPC nodes.

According to PANews' actual testing, participating in this mining activity is a complete loss-making business.

The introduction of SPAM is to earn SPAM on Sui, and the issuance mechanism is to mint 1 billion SPAM tokens every day. You can earn SPAM by simply sending Sui transactions, and the more transactions you send, the more you earn. According to PANews statistics, since its launch, SPAM has completed 147 million transactions and mined 3.5 billion tokens. On average, 23 SPAM tokens can be mined per transaction.

According to PANews statistics, since the launch of the token, the income generated by mining has been lower than the handling fee expenditure. For mining users, it only helps the Sui mainnet refresh new transaction volume and handling fees.

(Note: Since SPAM was launched on May 5, the price from May 3 to May 5 is calculated based on the closing price on May 5)

Since SPAM's coin issuance mechanism is to add 1 billion coins every day, many users believe that this will lead to huge inflation and eventually cause the price to continue to fall. The explanation given by the founder of SPAM is at the level of a genius from the Statistics Bureau: "Because the supply of SPAM is increasing every day, but the daily increase in supply is constant. On the 10th day, there is 10B supply, and 1B will be minted (daily inflation of 10%), and on the 100th day, there is 100B supply, and 1B will be minted (daily inflation of 1%)." He means that although the number of SPAM is increasing every day, it is not considered inflation. On the contrary, because the total number is getting larger and larger, the inflation rate is decreasing. Juzy also posted a diagram of the inflation rate.

PANews made a graph of the changes in the number of tokens based on the actual changes in inflation, which is exactly the opposite of Juzy's curve.

However, SPAM's price curve perfectly coincides with Juzy's inflation curve. It has been falling since its launch, from a high of 0.0002113 to 0.00001532. The maximum drop was 92.7%. As of the price on May 7, its circulating market value was only 63,700 US dollars, and the LP of the trading pool was only 26,000 US dollars.

Mining projects caught in a wave of traffic

Of course, the indicators that truly test the ecological activity and technical capabilities of public chains are not just the number of transactions and TPS. As of May 7, the total number of tokens issued on the Sui chain was 10,811, while the number of new tokens on the Solana chain on May 5 was 13,642. In terms of active users, Sui's highest number of active addresses in the past week was 73,000, while Solana's number of active addresses in the past week was above 800,000.

In terms of TVL, Solana's current TVL is about 4 billion US dollars, while Sui's data is about 640 million. After multiple comparisons, it was found that the overall data gap between Sui and Solana is still nearly 10 times.

In the 24 hours (data time is 17:00 on May 6 to 17:00 on May 7), among the 11 trading pairs newly launched by Sui, only 1 to 2 people traded. It seems that the phenomenal product SPAM has not brought real ecological prosperity to Sui.

For Sui officials, perhaps they need to consider supporting some truly innovative and sustainable projects with positive feedback.