The developer of the Layer 1 blockchain Sonic, which is compatible with EVM, Sonic Labs, announced on Tuesday that they are upgrading the tokenomics of the Sonic chain through four successful governance proposals on the Fantom chain, including an airdrop event of approximately 2 billion S tokens.
Sonic Labs stated on the community platform X that the total initial supply of $S tokens is 3.175 billion, with a circulating supply of around 2.88 billion. Holders of the Fantom chain’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 now perform token conversions on its MySonic website.
According to Sonic’s documentation, the token issuance will mainly be used for three purposes: airdrops, ongoing funding, and block rewards, while also implementing various burning mechanisms to control the token supply limit.
Sonic Labs stated that six months after the issuance of S tokens (expected to start on June 18, 2025), the Sonic chain will airdrop 6% of S tokens (1.905 billion tokens), equivalent to the initial supply, to reward users and developers. They will also adopt a linear burning mechanism lasting for nine months to gradually reduce the total supply of S tokens while rewarding participation.
Additionally, six months after issuance, Sonic will start minting 1.5% of the initial total supply of tokens annually (47.625 million tokens per year) to fund the network’s growth for six years. To prevent token inflation, the network will burn unused newly minted tokens each year to ensure efficient use of funds.
To protect the token value and avoid generating new inflationary rewards in the early stages of Sonic, the blockchain will not mint new tokens for block rewards in the first four years. After four years from token issuance, S block rewards will resume, minting new tokens at a rate of 1.75% annually to reward validators. Sonic Labs stated that all unused ecosystem growth tokens will be recorded annually and burned.
Finally, Sonic Labs stated that the maximum expansion cap for S until 2031 is 15% (excluding block rewards), and various burning mechanisms are expected to significantly reduce the expansion rate during this period.
On the other hand, Binance announced today that they will support the token swap and rebranding of Fantom (FTM) to Sonic (S). The exchange will halt trading and delist all existing FTM spot trading pairs on January 13, 2025, at 11:00 (UTC+8), and open S token spot trading on January 16 at 16:00.
Related article: “Sonic mainnet to be publicly released, founder Andre Cronje: plans to conduct ICOs for all my DApps”
