Aug 15, 2024
6thTrade
Fantom's migration to Sonic has officially begun, thrusting the platform into the spotlight and causing a notable surge in the value of FTM, its native token. According to data from CoinGecko, FTM has jumped over 17% in the past week, reflecting the excitement and anticipation surrounding this significant network transition within the Fantom community.
Sonic Labs, the entity guiding this transformation, is set to carry forward Fantom's legacy, with four crucial proposals currently under consideration as the platform prepares for the Sonic mainnet launch. If approved, these proposals will ensure a seamless transition for both users and developers as they migrate to the new Sonic network.
Core Proposals Pave the Way for a Smooth Sonic Transition
According to a recent update from the Sonic Labs X account, these four proposals are designed to enhance the user experience during the switch to the Sonic network. One of the most significant proposals is the introduction of a one-to-one exchange ratio between FTM and $S, the native token of the Sonic network. This new token is poised to function similarly to FTM, with an initial supply of 3,175,000,000 $S tokens on Genesis Day.
In a gesture of appreciation to loyal Opera users, the platform plans to allocate over 190,500,000 $S tokens for an airdrop. However, this airdrop comes with built-in safeguards to protect the market from a sudden influx of $S tokens. A burn mechanism will penalize users who rush to claim their airdrop on day one, reducing their vested tokens by up to 88.9%. This approach encourages users to engage in on-chain activities while ensuring they benefit from a long-term gain.
New users will also be eligible for the airdrop once the Sonic network is fully operational, adding an extra layer of inclusivity to the migration process.
Funding for the new network is already in place, with 47,625,000 $S tokens earmarked for initiatives like Sonic Spark and Sonic University, which will equip developers with the knowledge they need to build on the platform. To ensure funds are used efficiently, any unused tokens will be burned after a specified period. For instance, if only half of the allocated 47,625,000 $S tokens are utilized, the remaining half will be burned to maintain the network's integrity and prevent waste.
Moreover, validator rewards will transition from the Opera network to Sonic, promoting the use of the new network while safeguarding $S from excessive inflation during the first four years.
FTM Price Steadies Ahead of Sonic Network Launch
At the time of writing, FTM is grappling with the $0.3689 resistance level, a critical threshold that bulls must convert into support to sustain long-term momentum.
While the token's upward trajectory appears to be slowing, the overall positive market sentiment is expected to gain traction in the coming days, potentially pushing bearish forces out of the FTM market. This shift could enable FTM to reclaim the $0.3689 level in the short term, setting the stage for a longer-term target of $0.4855 as the Sonic network launch draws nearer.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are highly volatile and can result in significant financial loss. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. The views expressed in this article are those of the author and do not necessarily reflect the opinions of the publisher or any affiliated parties. Investing in cryptocurrencies carries inherent risks, and past performance is not indicative of future results. Proceed with caution.
