Sonic Labs has secured community approval to issue $200 million worth of its native S tokens, a move aimed at penetrating US capital markets and creating a bridge between blockchain and traditional finance.
Key Takeaways:
Sonic Labs received near-unanimous approval to issue $200 million in S tokens for U.S. market expansion. $100 million will back a Nasdaq-listed PIPE vehicle, while $50 million supports a token-tracking ETP. Sonic is establishing a U.S. entity to lead its push into traditional finance and modernize outdated tokenomics.The vote, which concluded Sunday, saw 99.99% of participating wallets back the plan.
With over 700 million tokens used in the governance process, the proposal met the required quorum, signaling strong alignment within the Sonic community.
Sonic to Allocate $100M in Tokens for Nasdaq-Listed PIPE Vehicle
Sonic’s strategy includes allocating $100 million in S tokens to fund a strategic reserve supporting a planned Nasdaq-listed PIPE (Private Investment in Public Equity) vehicle.
An additional $50 million will go toward backing an exchange-traded product (ETP) that tracks the S token.
The product, according to Sonic, will be issued by a top-tier, regulated ETF provider managing over $10 billion in assets and custodied by BitGo.
To support its U.S. expansion, Sonic will establish a new entity, Sonic USA LLC, and recruit a New York-based leadership team to steer its efforts in Washington, D.C., and across the traditional finance landscape.
The project plans to allocate 150 million S tokens (valued at roughly $47.7 million) to jumpstart the new division.
While a growing number of public companies have turned to crypto to diversify their balance sheets, Sonic is taking a different route, using established financial structures to push deeper into the crypto sector.
The move marks a rare reversal of the typical crypto-to-TradFi playbook.
Sonic launched in December 2024, evolving from the Fantom Opera network through a token migration where FTM tokens were swapped 1:1 for S tokens.
However, Sonic inherited restrictive tokenomics from Fantom, with less than 3% of tokens controlled by the Foundation, leaving the team with limited flexibility to fund initiatives or forge major partnerships.
According to the project, this constraint caused missed opportunities, including potential engagements with GameStop, Robinhood, and Polymarket, and prevented early listings on major exchanges.
“We have 2018 tokenomics. We need 2025 tokenomics,” Sonic stated in the proposal.
Sonic Plans Gas Fee Overhaul to Boost S Token Deflation
To counterbalance the new token issuance, Sonic will revise its gas fee system and increase the burn rate of transaction fees, aiming to apply deflationary pressure to the token’s supply.
The company says this will allow it to participate in capital markets without diluting long-term holders.
The S token has faced significant headwinds, dropping nearly 69% since its January debut, per CoinGecko.
Meanwhile, Sonic is part of a U.S. Department of Commerce initiative to bring economic data onchain using Chainlink and Pyth oracles, enabling developers to access real-time macroeconomic indicators directly through its blockchain.
In May, the High Court of Singapore approved a winding-up order against Multichain Foundation Ltd following a 2023 security breach that caused over $210 million in user losses.
The order, issued on May 9, 2025, came in response to a petition filed by Sonic Labs, which was among the platforms affected by the hack.
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