What Is Sonic?
Sonic (S) is the next evolution of the Fantom (FTM) network, with the Fantom Foundation revealing a US$10 million capital infusion in May 2024 for Sonic’s ecosystem development. The Sonic name represents the project’s commitment to speed, interoperability, and a Web3 future.
Sonic Labs claims real-time settlement and transaction speeds of up to 10,000 transactions per second (tps), establishing Sonic as the highest-performing Layer-1 (L1) blockchain compatible with the Ethereum Virtual Machine (EVM). However, the Sonic network hasn’t yet approached these promised speeds under real-world conditions, averaging 6.92 tps with a recorded maximum of 471 tps as of this writing.
The Fantom Foundation’s capital infusion in May 2024 also formed the Sonic Foundation, responsible for Sonic’s ecosystem governance and treasury, with Sonic Labs focusing on decentralised applications (dapps) and Sonic’s broader community.
While Fantom has a solid reputation for speed, security, and scalability, Sonic’s refined infrastructure promises even faster transaction speeds that Fantom Foundation CEO Michael Kong believes will inspire Fantom’s existing community to “fully migrate” to the new token. Improvements over the Fantom network include the Sonic Gateway, a bridge supporting interoperability with Ethereum (ETH).
Sonic Labs wants to create an ecosystem where developers receive appropriate compensation for their dapps’ traffic to the network, featuring its Fee Monetisation (FeeM) programme that generates revenue for developers based on dapp performance. It works similarly to the way content creators on platforms like YouTube and TikTok receive compensation for views, and successful developers can receive up to 90% of the transaction fees collected by their dapps.
The S token launched in January 2025, earning immediate credibility through listing on trustworthy platforms like Crypto.com. FTM holders are able to upgrade to S 1:1 for the first six months after launch, ensuring a robust community. Sonic Labs has also backed the project with a white paper, formally explaining what Sonic and the S token are trying to accomplish.
How Does Sonic Work?
The Sonic network uses a modified Proof of Stake (PoS) consensus mechanism that is a continuation of Fantom’s ‘Lachesis’, leveraging Asynchronous Byzantine Fault Tolerance (ABFT). Consensus on transaction order is achieved independently without forcing network nodes to transmit finished blocks, significantly reducing the data processed per transaction.
This consensus mechanism was upgraded as part of Sonic’s infrastructure overhaul, with target average transaction fees as low as $0.001. Additionally, Sonic’s consensus mechanism is also based on the directed acyclic graph (DAG) structure, which allows validators to process event blocks without a strict linear order, facilitating transaction speed and efficiency.
The platform otherwise operates as a standard PoS blockchain, where nodes have to lock up S tokens to validate transactions, and validators are randomly chosen to propose blocks and verify transactions. Successful validators and their backers receive staking rewards, promoting decentralisation since anyone can participate, as well as security, as everyone has a financial incentive to prioritise trustworthy validators.
The Tokenomics of S
Sonic launched the S token with a supply of 3.175 billion. Several innovative burning mechanisms are planned to reduce this supply and limit inflation, but how well they work is yet to be determined.
Early adopters earned points towards airdrops to incentivise interaction with Sonic’s ecosystem, a programme still ongoing. For any recipients of an airdrop, 25% of earned tokens can be claimed immediately; the remaining 75% is locked in a nine-month vesting schedule as ERC-1155 tokens and burned proportionately if claimed early.
Additionally, 47,625,000 S tokens (1.5%) will be minted annually for six years to increase S adoption, scale Sonic Labs operations, and fund marketing campaigns. S is an inflationary token due to staking rewards, and Sonic’s staking rewards are funded through Fantom’s block rewards for the first four years, with emissions generating an annual inflation rate of 1.75% once those funds run out.
The S token has no max supply, and the net changes in token supply will depend on the balance between the multiple avenues for adding new tokens to the ecosystem and burning mechanisms. As of this writing, it has a market capitalisation at $1.41 billion.
Does S Have Utility?
Sonic aims to combine the scalability and speed of a Layer-1 blockchain with the security of its native EVM-compatible bridge to power decentralised finance (DeFi) applications. Sonic’s rapid transaction processing and minimal fees may provide additional incentive for developers to support the platform, with bridges to other ecosystems facilitating interoperability as needed.
Sonic Labs actively encourages dapp development to realise the project’s ambitions. Enhanced grant programmes provide financial incentives to developers, and the FeeM programme provides the best developer compensation in the industry. The Sonic network already has a robust collection of dapps, with frequent releases of new options.
Where Will S Go in 2025 and Beyond?
Sonic’s value will be determined by the popularity of its network’s dapps, and Sonic Labs is equipped with a marketing budget to promote a community around the S token. As it is, there are no guarantees of success in the competitive cryptocurrency industry, and the token’s high float may limit its price upside potential even if things go well.
How to Buy S
Purchasing S and 350-plus other cryptocurrencies is easy with the Crypto.com App. Below is a step-by-step tutorial for getting started.
- Download the Crypto.com App to a favourite device from the Apple App Store or Google Play.
- Complete a simple sign-up process. On-screen menus walk users through every stage.
- Fund the account. Crypto.com supports 20-plus fiat currencies, including USD, EUR, GBP, and HKD. Funding the account with a bank may take up to three days to clear, while choosing Apple Pay or a debit/credit card allows instantaneous transfers.
- Users can begin buying S and other cryptocurrencies as soon as their account is funded.
Conclusion
Sonic has an impressive technology stack, a proven development team, and a detailed white paper highlighting the project’s goals and timelines. The FeeM programme aims to provide financial incentives for blockchain developers, with an extensive ecosystem of dapps already in place. Additionally, Sonic’s infrastructure is prepared for a Web3 future.
However, the S token has a large float that may limit its price upside potential, and existing burning mechanisms may not mitigate inflationary tokenomics. S also faces stiff competition from other blockchains with similar value propositions. Users should consider their personal risk tolerance and goals before purchasing S or any other cryptocurrency, and never spend more than they can afford to lose.
Due Diligence and Do Your Own Research
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What Is Sonic (S)?
Discover why the established Fantom network rebranded to Sonic as part of a new emphasis on speed, blockchain interoperability, and a Web3 future.
- Sonic is a Layer-1 blockchain ecosystem with a Layer-2 bridge connecting it to Ethereum, promoting interoperability while building on Fantom’s reputation for speed, security, and scalability.
- In May 2024, the Fantom Foundation announced the creation of the Sonic Foundation, Sonic Labs, and a US$10 million capital infusion to support a new S token.
- The S token formally launched in January 2025, with holders of the Fantom FTM token able to upgrade to S for the first six months on a 1:1 basis.
- Sonic has inflationary tokenomics due to a launch float of 3.175 billion S tokens, airdrops for early adopters, staking rewards, and an annual 1.5% allotment to scale the project.
- Sonic incentivises developers through Fee Monetisation (FeeM), allowing decentralised application (dapp) creators to claim up to 90% of the transaction fees generated by their projects.
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