Learn how Sonic’s S token introduces staking, governance, and innovative tokenomics for a decentralized future, offering seamless upgrades for FTM holders.
Sonic Network has officially launched its native S token, enabling seamless upgrades for Fantom (FTM) holders via the MySonic portal. The S token serves as the backbone of Sonic’s ecosystem, driving transaction fees, staking, governance, and validator rewards while introducing innovative tokenomics to sustain growth and incentivize participation.
FTM to S Token Transition Made Simple
FTM holders can upgrade their tokens to S on a 1:1 basis through the upgrade portal. For the first 90 days, users can freely swap between FTM and S tokens. Post this window, upgrades will only move from FTM to S. Users holding FTM on Ethereum will soon gain access to the portal, or they can transfer assets to Opera for immediate upgrades. Sonic is also collaborating with centralized exchanges (CEXs) to facilitate direct upgrades.
Powering the Network: Staking and Validator Rewards
S holders can stake their tokens on MySonic, securing the network while earning rewards. Staking withdrawals require a 14-day waiting period. Validators play a critical role, earning block rewards and transaction fees, which adjust dynamically based on network participation. During Sonic’s first four years, block rewards will stem from reallocated Opera rewards, maintaining a 3.5% APR target without inflating supply.
Tokenomics: Sustaining Growth Without Inflation
At launch, the total supply of S tokens matches FTM’s 3.175 billion tokens. Sonic introduces additional mechanisms, including:
- Airdrops: Six months post-launch, 6% of the supply will reward active users and developers, using a burn mechanism to reduce supply over time.
- Funding Initiatives: Annual minting of 1.5% of the supply (47.6M tokens) supports global adoption, DeFi campaigns, and developer programs like Sonic Spark. Unused tokens will be burned, preventing inflation.
- Token Burns: Transaction fees, airdrop reductions, and unused funding are burned, ensuring long-term sustainability.
Ecosystem Vault for Community Growth
Sonic expands its community-building efforts by revising the Ecosystem Vault. A portion of network fees will be allocated quarterly to the Sonic Community Council (SCC), empowering them to enhance user programs, developer onboarding, and app support.
Innovating the Decentralized Landscape
Sonic’s transition from FTM to S establishes a robust foundation for future scalability, efficiency, and decentralized innovation. By addressing inflation risks and incentivizing validators, Sonic’s tokenomics aim to redefine sustainable blockchain ecosystems.
For further details, visit MySonic to explore staking, upgrading, and ecosystem initiatives.
