Company: GSUI
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001193125-25-309828
Chunk: 13

Company: Grayscale Sui Trust (SUI)
Filing Date: 2025-12-05
Form: S-1
Chunk 13
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 of SUI or the amount of Native Staking Consideration received as a staking rewards. As a whole, the Staking Arrangements would permit the Trust to retain ownership of its SUI at all times for U.S. federal income tax purposes while simultaneously protecting and conserving the Trust Estate by mitigating the risk that another party or group could control a majority of the SUI Network and engage in transactions that could reduce the Trust Estate’s value.

A Staking Provider must meet certain requirements in order to be selected to participate in the Provider-Facilitated Staking model contemplated by the Staking Arrangements. For example, each Staking Provider would be required to be unrelated to both the Trust and the Sponsor. Moreover, a Staking Provider would also be required to regularly enter into staking arrangements with unrelated persons involving activities similar to the Staking Arrangements. Under the Staking Arrangements, the Staking Provider would bear all of its own expenses (including those on account of its validation activities).

The Staking Provider would be the node operator and would be obligated to operate the validator through which the Trust’s SUI is staked to ensure that validation occurs. The Trust’s SUI would be staked directly from the Trust’s wallets administered by the Custodian, and the Staking Provider would perform any related validation activities. The Trust would retain control of its staked SUI because (1) the staked SUI would remain in the Trust’s wallet administered by the Custodian (rather than transferred to a wallet address controlled by the Staking Provider) and (2) the Trust (rather than the Staking Provider) would retain the ability through the Custodian to un-stake its SUI from the applicable smart contracts. Because staked SUI would remain in the Trust wallet administered by the Custodian, even when staked, the Trust’s SUI would not be commingled with the SUI of any other SUI holder in connection

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with Staking, such as the Staking Provider or others who stake to the Staking Provider, despite the Trust delegating its validation rights to the Staking Provider, which may be in receipt of other SUI holders’ validation rights. In particular, the Staking Provider would not be able to transfer unstaked SUI or Staking Consideration to another address on the Sui Network. The Trust would not itself undertake any validation activities, and the Sponsor is not required to perform any services. Moreover,