Sonic SVM is making a bold move to reshape how its native $SONIC token captures value.
Instead of burning tokens as it previously did, the Solana-based project is switching to a market-based approach that uses transaction fees to fuel token purchases and gradually remove them from circulation.
The new system marks a shift from destruction to accumulation: half of the fees collected across the network will now go toward buying $SONIC on the open market. Rather than being permanently burned, these tokens will be locked up and released over a 24-month period, injecting steady demand while shrinking available supply over time.
Chris Zhu, CEO of Sonic SVM, believes this change does more than tweak token economics — it aligns incentives across the board. “We’re not just removing tokens; we’re creating a financial engine that supports our ecosystem’s growth,” he said.
But the update goes beyond just buying and locking tokens. A portion of the fees collected in SOL—Sonic’s base currency—will be staked on Solana’s mainnet. Rewards from that staking will then be paired with vested $SONIC tokens to build liquidity pools native to Sonic’s mainnet. These pools will be incentivized, offering extra benefits to users who help deepen liquidity.
This dual mechanism—pairing steady buy pressure with staked-backed liquidity—strengthens Sonic’s integration with Solana while also enhancing token utility within its expanding network of games and applications.
According to Alan Zhu, co-founder and CPO, the long-term goal is to ensure that as the platform scales, so does the demand for its token. “Every interaction with the network should reinforce the value of $SONIC,” he noted. “We’ve built a model where growth isn’t theoretical—it’s embedded into how the protocol operates.”
Documentation and rollout details are expected in the coming weeks as Sonic prepares to activate this next phase of its token model.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/sonic-svm-redesigns-tokenomics-to-fuel-demand-and-cut-circulating-supply/