Sonic Labs, the developer of Sonic, a Layer 1 blockchain compatible with EVM, announced on Tuesday that it is upgrading the tokenomics of the Sonic chain through four successful governance proposals on the Fantom chain, including an airdrop activity of approximately 200 million S tokens.
Sonic Labs stated on the community platform, X, that the initial total supply of S tokens during the token issuance phase is 3.175 billion, with a circulating supply of approximately 2.88 billion. Holders of Fantom’s native token, FTM, can convert FTM into S at a 1:1 ratio. Sonic officially launched its mainnet on December 18th, and users can already perform token conversions on its MySonic website.
According to Sonic’s documentation, its token issuance will be used in three main areas: airdrops, ongoing funding, and block rewards, while simultaneously implementing various burn mechanisms to control the token’s supply limit.
Sonic Labs stated that six months after the issuance of S tokens (starting on June 18, 2025, as projected), Sonic chain will mint 6% of S tokens, equivalent to the initial supply, for the airdrop activity to reward users and developers. This will be accompanied by a linear burn mechanism lasting for nine months, gradually reducing the total supply of S tokens while rewarding participation.
Additionally, six months after issuance, Sonic will start minting tokens equivalent to 1.5% of the initial total supply (47.625 million tokens per year) annually for a period of six years to fund the network’s growth. To prevent token inflation, the network will burn any unused newly minted tokens, ensuring efficient utilization of funds.
To protect the token’s value and avoid generating new inflationary rewards during Sonic’s initial launch phase, the blockchain will not mint new tokens for block rewards during the first four years. After four years since token issuance, S 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 and burned annually.
Finally, Sonic Labs stated that the maximum expansion limit for S tokens, excluding block rewards, will be 15% by 2031. Various burn mechanisms are expected to significantly reduce the expansion rate during this period.
On the other hand, Binance announced today that it will support the token swap and rebranding from Fantom (FTM) to Sonic (S). The exchange will halt trading and delist all existing FTM spot trading pairs on January 13th, 2025, at 11:00 (GMT+8), and open spot trading for S tokens on January 16th, 2025, at 16:00.
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