Ubiquitin-like modifications regulate nearly every aspect of cellular functions. A key step in these modifications is the recognition of the carrier enzyme (E2) by the activating enzyme (E1). In this study, we have found that a critical E2-binding surface on the E1 of the small ubiquitin-like modifier has unusually high populations in both ordered and disordered states. Upon binding the E2, the disordered state is converted to the ordered state, which resembles the structure of the bound conformation, providing a mechanism to resolve the "Levinthal Paradox" search problem in a folding-upon-binding process. The significance of the folding-unfolding equilibrium is shown by the loss of functions of the mutations that shift the equilibrium to the folded state. This study highlights the importance of conformational flexibility in the molecular recognition event.The conjugation of ubiquitin or ubiquitin-like proteins to other cellular proteins is one of the most important mechanisms in regulating cellular functions in eukaryotic systems and is broadly involved in controlling the life spans, trafficking, and functions of a wide range of proteins (1-4). Among the ubiquitin-like modifiers, the small ubiquitin-like modifier (SUMO) 5 is the most studied, and its modification regulates many essential functions, such as gene transcription, hormone response, DNA repair, and nuclear import (5-7). Multiple enzymes are required for post-translational modifications by ubiquitin or ubiquitin-like proteins (1,8). A ubiquitin-like protein (Ublp) is first activated by E1. The E1 required for SUMO modification is a tight heterodimer of two proteins, known as SUMO activation enzymes 1 and 2 (SAE1 and SAE2), which are homologous to the N-terminal and C-terminal portions of the ubiquitin E1, respectively (9). E1 catalyzes the adenylation of the C-terminal carboxyl group of the Ublp, and it then forms a thioester bond between the -SH group of the active site Cys residue and the C-terminal carboxyl group of the Ublp. The Ublp is then transferred to E2 (known as Ubc9 in the SUMO pathway), forming a thioester bond with the -SH group of the active site Cys residue. In the final step, the Ublp is attached to target proteins by forming an isopeptide bond between its C-terminal carboxyl group and the ⑀-amino group of a Lys residue on the target protein. This step generally requires another enzyme, isopeptide ligase.During the transfer of Ublp from E1 to E2, the E2 enzyme is recruited to the E1-SUMO thioester conjugate by binding to multiple sites on E1, including the Cys domain (the domain containing the active Cys residue) and the ubiquitin-like (Ubl) domain (10, 11). Among these multiple binding sites, the Ubl domain has the highest binding affinity, and thus it is the key E2-binding site. The multivalent interaction produces high affinity binding between E1 and E2, which accounts for the efficiency of E1 at low concentrations. At the same time, the low to medium affinity of each of the individual interactions allows fast turnover of the enzym...