Introduction

Suno turns operating solar infrastructure into a digital asset that anyone can hold, redeem against the protocol, and earn from. This section is the protocol reference: what the instruments are, how value enters and leaves the system, and which guarantees are enforced by code, which by collateral, and which by management. The purpose behind the system, and the financing gap it exists to close, are covered in Suno Overview; these pages assume you want the mechanics.

What Suno does

Suno originates these projects, finances their construction, operates them, and converts the resulting portfolio into on-chain instruments with different jobs:

• The pWatt is a per-project token that raises the capital to build. It carries the project from fundraising to commercial operation; when the project starts producing revenue, the entire pWatt supply is exchanged for uWatt, and the pWatts themselves are deposited in the Reserve as the on-chain certificate of the project it now owns.

• The Reserve is the protocol's balance sheet: a managed portfolio of operating energy assets plus a sleeve of liquid reserves, kept worth more than the tokens issued against it.

• The uWatt is the asset the public holds: an ERC-20 backed by the Reserve, mintable and redeemable directly against the protocol at a target price of $1. Staking it produces c-uWatt (Compounding uWatt), the form that accrues the portfolio's energy revenue as yield.

Each piece has its own page. The short version of how they fit: capital buys pWatts and builds a plant; the plant proves itself and its appraised value moves into the Reserve; the Reserve backs uWatt; electricity sales flow back as stablecoin payments, part retained to strengthen the backing and part distributed to stakers.

What kind of asset the uWatt is

uWatt is an asset-backed, yield-bearing token: a real-world-asset (RWA) instrument, not a payments stablecoin. A payments stablecoin promises fully liquid backing and instant 1:1 redemption of the whole supply. Most of the uWatt's backing is illiquid, because energy infrastructure is what generates the return, so instant redemption is guaranteed only up to the liquid portion of the Reserve. The $1 rests on backing: while the Reserve is worth at least as much as the supply, every token is redeemable at $1, and the protocol holds a buffer above that line that protects investors from fluctuations in the value of the underlying assets. The closest traditional analogue is a share in an over-collateralized income fund with a fixed unit value, where returns are paid out rather than priced in.

How this section reads

Protocol overview draws the full value circuit and the two commitments everything else follows from. The uWatt and The Reserve cover the asset and its backing; The pWatt covers project financing and the economics of the swap into the Reserve; Yield and staking covers how energy revenue becomes staker yield; Risk management and Governance and parameters cover what can go wrong and who can change what.

The valuation methodology behind every number the Reserve books, from a solar plant to an auditable net present value, is documented in full in The Financial Model.