Quick Breakdown
- Sonic will issue 633.9M new S tokens to fund U.S. expansion, ETF plans, and a NASDAQ PIPE.
- Supply expands by 14%, but new burn mechanics are introduced to counteract dilution.
- The governance proposal passed with 99.98% approval, underscoring community support.
Governance Approval Paves Way for Overhaul
Sonic Labs’ tokenomics overhaul was unveiled on September 7 by analyst Tokenomist, outlining new supply dynamics aimed at boosting institutional adoption in the United States. The changes follow a governance proposal that closed on August 31 with near-unanimous approval, giving the project the mandate to move forward with its updated framework.
New Token Issuance and Allocation
Under the new framework, 633.9 million fresh S tokens valued at roughly $196.5 million will be issued. The distribution includes 150 million tokens to support Sonic’s U.S. operations, 322.6 million tokens for a NASDAQ private investment vehicle, locked for a minimum of three years, and 161.3 million tokens for a future ETF partnership under BitGo custody.
1/ 📢 $SONIC Tokenomics Update Thread 🧵
Following the approved governance proposal, @SonicLabs is implementing significant tokenomics changes to enable U.S. institutional expansion, ETF development, and enhanced competitiveness against projects with larger treasury reserves.… pic.twitter.com/3YSRX6w9wb
— Tokenomist (@Tokenomist_ai) September 7, 2025
The move raises Sonic’s total available supply from 4.12 billion to 4.75 billion, with circulating supply climbing 14% to 3.79 billion. Released supply grows by 5.4% to 3.14 billion, while total supply expands 14% to 3.89 billion.
Strengthened Burn Mechanics
Despite the inflationary issuance, Sonic Labs has tightened its deflationary levers. For builder-focused transactions, 90% of fees will be returned to builders, 5% allocated to validators, and the remaining 5% permanently burned. For non-builder transactions, 50% of fees will be removed from circulation, bolstering long-term scarcity.
U.S. Institutional Strategy
The tokenomics redesign is central to Sonic’s U.S. strategy. The project has established Sonic USA, a Delaware-registered entity with operations in New York, to better engage with regulators and institutional players. The new capital will fund the NASDAQ PIPE and seed a U.S.-listed ETF tracking the S token, aiming to position Sonic as a competitive player against projects with deeper treasuries.
Strong Community Backing
The overhaul received overwhelming support, passing with nearly 860 million votes in favor representing 99.98% approval. The outcome signals strong community confidence in Sonic’s vision of marrying modern tokenomics with institutionally aligned structures.
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