Summary (TL;DR):
- Sonic SVM replaces token burn with a buy-and-lock value accrual mechanism.
- 50% of all transaction fees will now be used to buy $SONIC on the open market.
- Acquired tokens are locked in a vault with a 24-month linear vesting schedule.
- Protocol-owned liquidity pools to be created, boosting $SONIC and SOL liquidity.
- SOL staking introduced, aligning Sonic SVM closely with the Solana ecosystem.
- Designed to support Sonic’s expanding ecosystem of games and social platforms.
A New Era of Tokenomics for Sonic SVM
Sonic SVM, the first Solana Virtual Machine (SVM) chain extension built on Solana, has introduced a transformative value accrual mechanism for its native $SONIC token. This strategic upgrade replaces the previous token-burning model with a dynamic buy-and-lock system aimed at creating consistent buy pressure, deepening liquidity, and aligning with Solana’s ecosystem growth.
“This redesigned mechanism represents a fundamental shift in how we think about long-term token value,” said Chris Zhu, CEO of Sonic SVM.
“Rather than simply burning tokens, we’re implementing a strategic approach that creates strategic demand while building protocol-owned liquidity.”
Powered by Fees, Built for the Future
Under the new system:
- 50% of all transaction fees, which were earlier burned, will now be used to purchase $SONIC tokens on the open market.
- These tokens are then locked in a separate vault and follow a 24-month linear vesting schedule, limiting circulation and increasing scarcity over time.
Boosting Liquidity and Aligning with Solana
The mechanism also introduces a new approach to $SONIC fee handling (12.5% of all fees):
- SOL is staked on Solana’s mainnet in exchange for $SONIC.
- Vested $SONIC tokens will be matched with staking rewards to form liquidity pools on the Sonic SVM mainnet.
- Liquidity Providers (LPs) will be incentivized with additional rewards, making it an attractive option for the community.
“The more the network is used, the stronger the buy pressure and deeper the liquidity becomes,” noted Alan Zhu, Co-founder and CPO of Sonic.
What It Means for the Community
This upgraded tokenomics design is built to benefit the Sonic ecosystem in multiple ways:
- Sustained token value through locked supply and continuous demand.
- Deeper liquidity, improving tradability and stability.
- Enhanced alignment with Solana, thanks to SOL staking integration.
- Greater user incentives to encourage active participation from LPs.
Sonic SVM is crafting a programmable attention settlement layer on Solana via the HSSN network—unlocking precise, on-chain tracking of user engagement across decentralized apps. With this updated tokenomics model, Sonic SVM is positioning $SONIC as a long-term value asset deeply integrated with the growth of the Solana ecosystem.
Stay tuned—the full rollout is expected in the coming weeks. For more information, visit the official Sonic SVM website.