Protocol overview

The Suno Protocol is designed to unlock scalable, transparent, and liquid financing for clean energy infrastructure. At its core is a two-token system that channels capital directly into real-world projects while enabling the creation of a stable, energy-backed digital asset.

At the core of the Suno Protocol is the uWatt—an energy-backed digital asset supported by operational clean energy infrastructure. Each uWatt represents a fractional claim on a Reserve composed of multiple clean energy projects and entitles its holder to a proportional share of the income generated by those assets. This Reserve expands over time as project-specific tokens, known as pWatts, are contributed to it.

To support this system, the Suno Protocol is governed by a set of smart contracts that automate the origination of new projects, the issuance of pWatts, the management of the Reserve, and the flow of funds and rewards. Together, these components form a decentralized and transparent financial architecture, enabling efficient capital deployment and long-term sustainability.

The Suno Protocol defines several core functions:

1. The creation and management of the Reserve, a pool of operational projects that back the uWatt and generates yield.

2. The issuance of the uWatts, which occurs when participants transfer ownership of their pWatts to the Reserve, based on the intrinsic value of the contributed project.

3. The origination and tokenization of clean energy projects, where pWatts represent ownership rights and yield participation.

4. The tracking and monetization of energy generation, enabling transparent and verifiable project income.

5. The management of the income produced by the projects in the Reserve, including:

   1. A depreciation compensation mechanism to preserve the long-term value of the Reserve,

   2. Liquidity provisioning to support secondary markets, and

   3. The distribution of rewards to Reserve owners — i.e., the holders of uWatts.

Each of these components will be described in detail in the following sections.