Sonic Labs, the developer of the EVM-compatible Layer 1 blockchain Sonic, announced on Tuesday that it is upgrading the token economic model of the Sonic chain through four successful governance proposals on the Fantom chain, including a project to issue approximately 200 million S tokens. airdrop activity.
Sonic Labs stated on the social platform Scale converts FTM to S. Sonic has officially launched its mainnet on December 18, and users can already perform token conversions on its MySonic website.
According to Sonic's documents, the token issuance will generally be used for three parts: airdrops, ongoing funding, and block rewards, while employing various destruction mechanisms to control the token cap.
Sonic Labs stated that six months after the issuance of S (expected to start on June 18, 2025), the Sonic chain will mint S tokens equivalent to 6% of the initial supply (190.5 million tokens) for airdrop activities to reward users and developers, using a 9-month linear destruction mechanism to gradually reduce the total supply of S tokens while rewarding participation.
Additionally, six months after issuance, Sonic will begin minting tokens equivalent to 1.5% of the initial total supply (47.625 million tokens per year) annually to fund the network's growth for six years. To prevent token inflation, the network will destroy any new minted tokens that are unused in that year, ensuring effective use of funds.
In order to protect the token value and avoid generating new inflationary rewards during the early launch of Sonic, no new tokens will be minted for block rewards in the first four years. Starting four years after the token issuance, block rewards will resume, minting new tokens at a rate of 1.75% per year to reward validators. Sonic Labs stated that all unused ecosystem growth tokens will be recorded annually and destroyed.
Sonic Labs finally stated that before 2031, the maximum expansion cap for S is 15% (excluding block rewards), and multiple destruction mechanisms are expected to significantly reduce the expansion rate during this period.
We're elevating Sonic with upgraded tokenomics decided by 4 successful governance proposals on Fantom, including a ~200M $S airdrop. At launch, the circulating supply of S was around 2.88 billion with the initial total supply at 3.175 billion, allowing for migration at a 1:1… pic.twitter.com/uDRzXdXTM3
— Sonic Labs (@SonicLabs) December 24, 2024
On the other hand, Binance today announced support for the token swap and brand upgrade plan for Fantom (FTM) to Sonic (S). The exchange will stop trading and delist all existing FTM spot trading pairs on January 13, 2025, at 11:00 AM (UTC+8), and will open S token spot trading on January 16 at 4:00 PM.
Related articles: (The Sonic mainnet will be publicly released, founder Andre Cronje: Plans to conduct ICO for all my DApps)
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