On October 15, 2024, Fantom Sonic officially released its Litepaper, outlining core technology updates and a new tokenomics model for the project’s next developmental phase. This comprehensive overview delves into the intricacies of the Sonic upgrade, its potential impact on the Fantom ecosystem, and the innovative tokenomics of the new S token.
Table Content:
- From Opera to Sonic: Redefining Fantom
- Sonic Network: A New Era of Scalability and Efficiency
- Testnet Results: Validating Sonic’s Performance
- S Token Tokenomics and Funding: A Novel Approach
- Tokenomics: Balancing Inflation and Deflation
- Key Tokenomics Mechanisms
- Funding: Strategic Partnerships and Community Support
- Ecosystem Impact: Empowering Fantom Projects
- Conclusion: Ushering in a New Era for Fantom
so sánh sonic và operaComparison of Sonic and Opera. Source: Sonic Litepaper
From Opera to Sonic: Redefining Fantom
Since its mainnet launch in 2019, Fantom has positioned itself as a high-throughput, low-cost, EVM-compatible Layer-1 blockchain, catering primarily to DeFi projects. Following the Opera update, Fantom is now transitioning to the Sonic Network, a significant leap forward in blockchain technology.
Sonic Network: A New Era of Scalability and Efficiency
Sonic Network, or Sonic Chain, is a completely new Layer-1 project designed to achieve higher throughput, reaching up to 10,000 TPS with sub-second latency. It leverages an advanced storage system for efficient data management. The Sonic upgrade comprises three key components:
- Sonic Virtual Machine (SVM): This enhanced virtual machine improves data structures and smart contract processing, boasting a TPS 65 times higher than the previous EVM.
- Sonic Gateway: A trustless bridge facilitating secure and rapid asset transfer between Ethereum and Sonic. Transfers from Sonic to Ethereum are estimated to take around 10 minutes, while the reverse will take approximately 1 hour.
- Sonic Database: Utilizing a live pruning mechanism, this database deletes outdated data to conserve block space, reducing transaction fees and improving latency without shutting down validators.
Testnet Results: Validating Sonic’s Performance
The Sonic network’s testnet, launched in Q4 2023, has demonstrated impressive results, showcasing the potential of the upgraded network:
- Average Transactions Per Second: 49
- Block Production Time: 0.33 seconds
- Average Daily Transactions: 4,146,944
- Total Transactions: 1,303,023,000
These metrics suggest that Sonic is on track to achieve its target of 2,000-10,000 TPS (depending on transaction complexity) with sub-second block production times. Following further testing and governance processes, the Sonic Network is scheduled for mainnet launch in late 2024.
S Token Tokenomics and Funding: A Novel Approach
Tokenomics: Balancing Inflation and Deflation
S token Inflation. Source: Sonic Litepaper
Upon Sonic’s mainnet launch, existing FTM tokens will be converted 1:1 to S tokens. These new tokens will be utilized for gas fees, staking (minimum 1 S), validating (minimum 50,000 S), and governance.
While Sonic anticipates increased inflation during the first 7 years to fuel ecosystem development, continuous token burning mechanisms will be implemented to maintain economic balance. The maximum potential increase in S tokens is estimated at 809 million (25.5% of the current total supply), assuming zero effectiveness of the burning mechanisms.
Key Tokenomics Mechanisms
- Airdrop: 190,500,000 S tokens will be minted for airdrops to Opera and Sonic users. 25% will be claimable immediately, while the remaining 75% will be locked for 270 days. Early claiming will incur a time-based penalty, with penalized tokens subsequently burned.
Airdrop model. Source: Sonic Litepaper
- Ongoing dApp Funding: 47,600,250 S tokens will be minted annually for dApp development on Sonic. Unused tokens will be burned annually, ensuring no accumulation for subsequent years.
- New Block Rewards: For the first 4 years, remaining Opera Validator block rewards (280,268,896 S tokens) will be allocated to Sonic Validators. Subsequently, 111,125,000 S tokens will be minted annually to sustain validator rewards.
To balance increased block rewards and network usage, Sonic will burn 50% of fees for Non-FeeM contract executions. For FeeM contracts, 90% of fees will be directed to the dApps themselves, rather than validators. This innovative approach creates a potential deflationary scenario for S tokens if Non-FeeM network usage increases significantly.
Funding: Strategic Partnerships and Community Support
Gọi vốn SonicSonic Funding. Source: Cryptorank
Sonic has secured $10 million in strategic funding from prominent firms like Hashed Fund and Signum Capital, along with angel investors such as Robert Leshner (Compound), Sam Kazemian (Frax Finance), and Stani Kulechov (Aave). Beyond financial contributions, these partnerships signify strong industry support and potential for future collaborations.
Ecosystem Impact: Empowering Fantom Projects
The Sonic upgrade promises significant benefits for the Fantom ecosystem. Increased throughput enhances user experience and provides more robust infrastructure for dApp deployment. Projects, particularly in the DeFi space, will benefit from the guidance of Andre Cronje and the Fantom Foundation. Fantom has also committed significant resources (nine figures) to foster ecosystem growth on Sonic. Furthermore, the increased gas fee sharing (90%) for developers incentivizes innovation and provides substantial revenue streams. Beyond DeFi, memecoin projects and communities are also being actively supported through the Meme Season Program, which offers rewards based on market cap, trading volume, and gas usage.
meme season trên fantomChương trình Meme Season trên FantomMeme Season Program. Source: Sonic Litepaper
Conclusion: Ushering in a New Era for Fantom
The Fantom Sonic upgrade represents a significant advancement in blockchain technology, promising enhanced scalability, efficiency, and a more robust ecosystem. The innovative tokenomics of the S token, with its balanced approach to inflation and deflation, further strengthens the network’s long-term sustainability. While the mainnet launch is still pending, early testnet results and strong community support indicate a promising future for Fantom Sonic. The project’s commitment to developer incentives, coupled with strategic partnerships and a focus on diverse sectors like DeFi, Social, Game, AI, and Memecoins, positions Fantom Sonic as a leading contender in the Layer-1 blockchain landscape. The transition from FTM to S token, combined with the comprehensive upgrades, marks a pivotal moment in Fantom’s evolution, paving the way for a new era of decentralized innovation.
