Introduction

The Suno Protocol aims to fund the development of clean energy generation assets on a large scale to address the issue of climate change. Estimates show that, in addition to the current annual investment of $0.7 trillion USD, an extra $1.7 trillion USD is needed each year for climate-related initiatives such as clean energy infrastructure. This means that current global investment in sustainability represents less than 30% of what is actually required.

Moreover, the limited funding that does exist is heavily concentrated in developed economies. Emerging markets—home to nearly two-thirds of the global population—receive only about 15% of these resources. This imbalance not only hinders global climate progress but also overlooks regions with some of the highest potential for clean energy deployment.

At Suno, we believe that building a financial ecosystem centered on clean energy is one of the most effective ways to scale climate action. To do this, we’ve designed a two-token system that channels capital efficiently into renewable infrastructure while offering liquidity and accessibility to participants.

To build this energy-based financial ecosystem, Suno leverages blockchain technology through a two-token model that addresses key investment barriers such as high entry costs, low liquidity, limited diversification, and asset depreciation.

Project ownership is tokenized through the pWatt, with a distinct pWatt issued for each project. The total supply of pWatts is fixed and directly proportional to the project’s generation capacity, so that the unit price of a pWatt reflects the cost of originating one watt of clean energy capacity. Initially, pWatts serve as investment vehicles to fund project development. Once operational, the energy generated is monetized, and the Suno Protocol distributes revenue to pWatt holders in proportion to their ownership.

Additionally, the Protocol maintains a Reserve of operational projects—represented by a pool of pWatts—which, like any other holder, earns the yields generated by those assets. This Reserve of clean energy-generating projects serves as collateral for the issuance of an energy-backed digital asset: the uWatt. Partial ownership of the Reserve is represented by uWatts, and new uWatts are issued only when additional clean energy assets are added to the Reserve.

A Reserve of real-world energy projects, represented by the uWatt

The Suno Protocol creates a different instance of pWatt token for every different project, which means that pWatts from one project are not interchangeable with pWatts from another project.

On the other hand, the uWatt token is unique and represents the ownership over an entire Reserve of projects, and serves as a liquidity hub for the ecosystem—aggregating value from multiple individual projects and enabling broader, more fluid participation in the clean energy economy.

New uWatts are issued exclusively when pWatt holders of an operational project choose to swap their ownership—represented by their pWatts—for uWatts. The number of uWatts received in the swap is based on the intrinsic value of the project being exchanged. The Protocol calculates this value as the Net Present Value (NPV) of the project’s expected future cash flows. This mechanism incentivizes holders to lock their pWatts into the Reserve, as the intrinsic value of a project shortly after it begins operations is typically 15% to 25% higher than its origination cost—that is, the price initially paid for the pWatts.

Participants in the protocol have two main options: they can acquire uWatts to passively earn yields backed by the entire Reserve, or they can take a more active role by funding specific clean energy projects through the purchase of pWatts. Holding pWatts entitles them to project-specific yields for up to 30 years. Once a project becomes operational, pWatt holders can choose to swap their tokens for uWatts at any time, gaining exposure to the diversified returns of the full Reserve. Since acquiring pWatts involves greater project-specific risk, it also offers higher potential rewards.

Although each individual project has a limited lifespan, the Protocol periodically accounts for the depreciation of each asset. To preserve the long-term value of the Reserve, a portion of its income is allocated to offset this depreciation. This is achieved by acquiring new pWatts, effectively replenishing the Reserve and ensuring that its overall value remains stable or grows over time.

As an energy-backed digital asset whose value is supported by real-world clean energy infrastructure, the uWatt is designed to remain stable over time, function as a reserve of value, and reward participants who contribute to the ecosystem’s growth.

The architecture described above effectively removes traditional investment barriers by creating a dynamic, liquid financial ecosystem rooted in tangible, income-generating clean energy assets—laying the foundation for a new wave of climate-aligned finance.