Protocol overview

The Suno Protocol enables scalable, transparent, and liquid financing for clean energy infrastructure through a two-token system that channels capital into real-world projects while creating a stable, energy-backed digital asset.

At the center of the protocol is the uWatt — an energy-backed token representing a fractional claim on a diversified Reserve of operational clean energy projects. Each uWatt entitles its holder to a proportional share of the income generated by these assets. The Reserve expands over time as project-specific tokens, known as pWatts, are contributed to it.

The protocol is powered by smart contracts that automate:

• The origination and tokenization of clean energy projects (through the issuance of pWatts),

• The issuance of uWatts when pWatts are deposited into the Reserve,

• The management of the Reserve, including income flows, liquidity provisioning, and reward distribution.

Core Functions of the Protocol

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.

Economic Model

Suno creates a regenerative financial system that bridges clean energy infrastructure with decentralized finance. The model is designed to align the incentives of early-stage investors, infrastructure developers, and passive yield seekers by connecting real-world cash flows to on-chain assets.

pWatts — Project-Specific Ownership

At the foundation of this model are the pWatts — tokens that represent fractional ownership in specific solar energy projects. Users acquire pWatts through a primary marketplace, providing the upfront capital needed to build new projects. Once operational, these projects begin generating real-world income from energy sales. This income is distributed proportionally among all pWatt holders, establishing a direct link between real-world infrastructure and on-chain yield.

uWatts — Diversified yield

Participants who wish to exit their position or gain broader exposure can mint uWatts by transferring their pWatts into the Reserve. The Reserve then receives income from all the pWatts it holds, creating a diversified yield stream that backs the uWatt token. uWatt holders receive periodic rewards from this blended income, net of allocations for depreciation and liquidity incentives.

Liquidity & Market Access

Decentralized exchanges (DEXes), supported by protocol-provided liquidity, enable trading between participants, ensuring that uWatts remain liquid and accessible.

The Regenerative Loop

The system generates an organic loop:

• Capital funds new infrastructure

• Infrastructure produces clean energy and generates yield

• Yield flows to pWatt and uWatt holders

• uWatt demand grows as a sustainable yield asset

• Liquidity increases, attracting new participants

• More capital enters, and the cycle continues

By design, the Suno Protocol creates a scalable, transparent, and regenerative financial ecosystem where the health of the token economy is tied to the performance of real-world assets.

---