Sui Ties Daily SUI Buybacks to Stablecoin Yield as Protocol Revenue Mix Shifts

Sui has revamped its SUI Buyback program by directing stablecoin yield into daily, open-market token purchases, creating a recurring source of demand linked to on-chain activity. By July, stablecoin yield had grown larger than gas-fee revenue, signaling a broader shift away from reliance on transaction fees. Network metrics point to rising adoption, with cumulative transactions nearing 700 million by late July and total cumulative revenue approaching $2.1 million. Stablecoin yield moves to the center of the model In a recent announcement, the Sui Network said stablecoin-related revenue will now be used for ongoing SUI purchases. The framework highlights fee-free peer-to-peer stablecoin transfers on the network, with yield generated from stablecoin balances over time providing the cash flow for buybacks. Trader K A L E O amplified the change on social media, likening the structure to major stablecoin issuers such as Tether and Circle, which earn income from Treasury-backed reserves but do not use that revenue to buy back a native token. Ecosystem data points to growing reserves and programmatic buys Follow-up commentary from the Sui Community said the program now draws from reserve yield tied to more than $442 million held within ecosystem reserves. The post said the Sui Foundation is buying SUI daily on the open market using yield generated from those stablecoin reserves held by millions of users. Shared figures describe a combined revenue stack: protocol fees plus stablecoin yield, with proceeds programmatically routed into SUI purchases. Tokens acquired through the mechanism are directed back toward ecosystem development. Revenue composition has also shifted over time. Gas fees accounted for most revenue early in the year, while stablecoin yield became the larger contributor after May. April 24 was flagged as a turning point when gas fees were repriced lower across the network, yet cumulative revenue continued to climb. Another noted change came on May 20, when gasless stablecoin transfers were introduced, after which stablecoin yield accelerated. Buybacks aim to create a circular growth loop Daily revenue snapshots illustrate the new balance: on July 30, stablecoin yield generated about $7,300 versus roughly $1,700 from gas fees. Transaction counts continued to rise despite lower costs, suggesting diversified revenue streams offset reduced fee intake. The model is designed as a circular system in which stablecoin yield funds recurring SUI purchases, and the purchased tokens support ecosystem investment and expansion. Its durability will depend on continued growth in stablecoin balances and the prevailing yield environment. Unlike burn programs, bought-back tokens are not automatically destroyed; the focus is sustained market buying that ties token demand to network usage. Tags: Crypto market, cryptocurrency, SUI