Sonic Labs, the creators of the Sonic layer-1 blockchain, have received approval to issue $200 million in S tokens to enter the US capital markets, which includes plans for a proposed exchange-traded product and an investment vehicle listed on Nasdaq.
The voting concluded on Sunday, with 99.99% of Sonic (S) tokens from 105 wallets supporting the proposal. It also achieved the required quorum of 700 million S tokens participating in the voting process.
The firm intends to allocate $100 million in S tokens to establish a strategic reserve for a Nasdaq PIPE (Private Investment in Public Equity) vehicle and $50 million for an S token-tracking ETP issued by a “regulated, top-tier ETF provider” managing over $10 billion in assets. BitGo is set to custody the fund, according to Sonic.
Sonic also plans to form Sonic USA LLC, appoint a US-based CEO and team in New York to advance its TradFi strategies and engage with Washington, DC, as detailed in the proposal overview. 150 million S tokens (valued at $47.7 million) will be allocated to support Sonic USA.
Numerous publicly traded companies have adopted crypto to strengthen their balance sheets, largely through crypto treasuries and investments in spot exchange-traded funds. However, Sonic’s strategy shifts this approach by utilizing traditional financial instruments to enhance its competitiveness within the crypto arena.
Sonic requires “2025 tokenomics”
The Sonic blockchain debuted in December 2024, following its rebranding from the Fantom Opera network, with Fantom’s FTM tokens converted to Sonic’s S tokens at a 1:1 ratio during the transition.
Nevertheless, the Fantom Foundation retained less than 3% of the initial FTM token supply, opting to acquire its own tokens instead of selling them for partnerships.
Sonic noted that the inherited tokenomics have hindered its ability to seize significant opportunities, such as partnerships or investments with GameStop, Robinhood, and Polymarket, as well as earlier token listings on prominent crypto exchanges. “[The] tokens weren’t available when needed,” it explained.
It highlighted that most teams behind layer 1 and 2 blockchains maintain 50% of the supply from the original tokenomics for strategic initiatives, but Sonic’s sub-3% allocation has compelled it to procure S tokens in the open market.
“We have 2018 tokenomics. We need 2025 tokenomics.”
Sonic aims to enhance the deflationary nature of the S token
Sonic plans to counteract new S token issuance by revising its gas fee mechanism, directing a higher proportion of transaction fees to be burned, thus reducing net inflation and fostering long-term deflationary pressure on the supply.
This approach enables “Sonic to compete with the established TradFi players (ETF/PIPE) without compromising holders,” as stated by the blockchain company.
The S token has struggled since its launch in January, plummeting nearly 69% during that time, according to CoinGecko.
Sonic participates in the US Commerce Department’s blockchain initiative
In addition, Sonic was recognized as a participant in the US Department of Commerce’s initiative to publish economic data on-chain, utilizing Chainlink’s and Pyth’s blockchain oracle services.
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This participation allows developers to reference US macroeconomic statistics directly on Sonic, eliminating the need to visit the Department of Commerce’s website.
Sonic asserts that this advancement will unlock new innovation on its platform—such as the development of trading models based on gross domestic product and inflation data and utilizing macro signals for on-chain lenders.
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