Key Highlights:
  • Sonic Labs launched a Fee Monetization (FeeM) system combining token burns and builder rewards.

  • Up to 90% of fees go to builders, 10% to validators, with the rest burned.

  • The update aims to create a deflationary, growth-driven ecosystem.

New Tokenomics for a Deflationary Model

Sonic Labs has introduced a Fee Monetization system that redistributes transaction fees to builders and validators while burning the remainder. Rewards range from 15% to 90%, depending on network usage, with a fixed 10% share for validators.

Governance and Ecosystem Upgrades

The update will be formalized via an onchain governance vote, aligning with CEO Mitchell Demeter’s push for long-term value creation. Sonic will also introduce Sonic Improvement Proposals (SIPs) and adopt several Ethereum EIPs to enhance compatibility and developer experience.

Focus on Growth and U.S. Expansion

Following its rebranding from Fantom Foundation in 2024, Sonic is now expanding operations in the U.S. and focusing on business-oriented development rather than performance benchmarks. Its token S currently trades near $0.14 with a market cap of $546 million.

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