Onchain data storage plays a crucial role in decentralized networks. Sui's storage fund provides an innovative solution by compensating validators and offering economic incentives for optimizing data usage.
What is Sui’s Storage Fund?
Sui’s storage fund is an economic mechanism that ensures compensation for perpetual onchain data storage. Validators supporting data storage receive compensation through transaction fees, which consist of a gas fee and a storage fee that is paid upfront to cover indefinite data storage. A unique feature of the system is the storage rebate, allowing users to reclaim a portion of the original storage fee upon data deletion.
Design and Incentives
The storage fund design addresses the intertemporal cost distribution issue, as future validators are expected to support previously created data. Funds are locked and staked to generate staking rewards, which compensate active validators. The mechanics incentivize users to delete data when the storage cost outweighs its value.
Building with Onchain Storage in Mind
For teams building on Sui, leveraging the storage fund can be transformative. Each transaction involves both types of fees, so developers must consider these costs in app design. This is particularly important for NFT or gaming platforms, where the fund’s mechanics can create unique incentives and interactions.
Sui’s storage fund offers a thoughtful and sustainable solution for onchain data management by compensating validators for their work and offering rebates for deleted data. This solution supports and perpetuates onchain data storage.
