Sonic Labs, the team behind the layer-1 Sonic blockchain, has secured approval to issue $200 million worth of its S tokens as part of a major push into U.S. capital markets. The initiative includes the launch of a proposed exchange-traded product (ETP) and a Nasdaq-listed investment vehicle.
The governance vote, which closed Sunday, saw 99.99% approval from 105 participating wallets, with more than 700 million S tokens cast — surpassing the required quorum.
Under the plan, $100 million in S tokens will be set aside for a strategic reserve to support a Nasdaq PIPE (Private Investment in Public Equity) vehicle. Another $50 million will back an S token-linked ETP to be issued by a “regulated, top-tier ETF provider” managing over $10 billion in assets, with custody handled by BitGo.
To execute its U.S. strategy, Sonic will establish Sonic USA LLC, hire a New York–based CEO and team, and expand policy engagement in Washington, D.C. An additional 150 million S tokens — valued at roughly $47.7 million — will fund the new U.S. entity.
While many publicly traded companies have turned to crypto to bolster their balance sheets—by building token treasuries and investing in spot ETFs—Sonic is taking the opposite approach. Its strategy uses traditional financial instruments to strengthen its competitiveness in the crypto sector.
The Sonic chain went live in December 2024 following its rebrand from the Fantom Opera network, with Fantom’s FTM tokens swapped 1:1 for Sonic’s S tokens during the migration.
But Sonic’s inherited tokenomics have proven restrictive. The Fantom Foundation held less than 3% of the original FTM supply, having chosen to repurchase its own tokens rather than retain them for partnerships. As a result, Sonic has had limited flexibility to pursue high-profile opportunities, such as potential partnerships or investments in GameStop, Robinhood, and Polymarket, as well as early token listings on major exchanges. “[The] tokens weren’t available when needed,” the project noted.
By comparison, most layer-1 and layer-2 teams reserve around 50% of their token supply for strategic initiatives. Sonic’s sub-3% allocation has left it relying on open-market purchases of its own token—something the team now aims to correct with what it calls “2025 tokenomics.”
“We have 2018 tokenomics. We need 2025 tokenomics.”
Sonic to Add Deflationary Pressure to S Token
Sonic plans to counterbalance new S token issuance by overhauling its gas fee model and burning a larger share of transaction fees. The update is designed to cut net inflation and introduce long-term deflationary pressure on the token supply.
“This way, Sonic can play with the big TradFi boys (ETF/PIPE) without sacrificing holders,” the company said.
The changes come as the S token struggles in the market. Since its January launch, the token has dropped nearly 69%, according to CoinGecko data.
Sonic Joins U.S. Commerce Department Blockchain Program
In a parallel move, Sonic has been named a participant in a U.S. Department of Commerce initiative to publish economic data onchain. The program leverages Chainlink and Pyth oracles, allowing developers to access U.S. macroeconomic statistics directly on Sonic, rather than through the Commerce Department’s website.
Sonic said the integration could spark new use cases on its blockchain, such as trading models based on GDP and inflation data, or lending protocols that incorporate real-time macroeconomic signals.
