At the end of August 2025, the Sonic Labs community almost unanimously approved a plan valued at $200 million in S tokens, aimed at funding regulated instruments – such as ETP and PIPE – and strengthening expansion in the United States. In the hours following the resolution, the markets experienced significant volatility and an increase in volumes, indicating that the operation is interpreted as a strategic move to improve liquidity and facilitate institutional access. In this context, the market reading was swift and, in some ways, already oriented towards the medium term.
According to the data collected by our on-chain research team, the proposal indeed recorded an extremely high consensus: 99.99% favorable vote with about 860 million tokens expressed by ~105 wallets, confirming the broad consensus reported by the press. Industry analysts we are in contact with observe that the allocation of 150 million tokens to the USA division and the announced deflationary measures will be determining variables for the circulating supply in the medium term. For the relevant regulatory framework, it is useful to consult the guidelines of the SEC – Framework for “Investment Contract” Analysis of Digital Assets and the listing requirements of the Nasdaq Listing Rules.
Quick Summary
- Governance approval: the proposal achieved 99.99% favorable votes, with a quorum that saw the participation of over 700 million tokens – in fact, according to Crypto News, nearly 860 million S tokens were cast by approximately 105 wallets.
- Allocations: $100M are allocated to a PIPE vehicle about to list on the Nasdaq, $50M to an ETP tracking the S token, and additional operational funds for the US structure.
- Expansion in the USA: the governance also includes the allocation of 150 million S tokens to launch the new American division, although the exact breakdown of operational funds remains to be clarified.
- Tokenomics 2025: review of fees, increase of burn, and the introduction of dynamic deflationary mechanisms.
- Macro on-chain: integration of oracles like Chainlink and Pyth to power DeFi contracts with official economic data.
What was approved: token structure and allocation
The proposal voted by the community authorizes an issuance of S tokens for a total value of $200 million, structured in three directions. An interesting aspect is the distribution between TradFi instruments and operational strengthening in the USA, which aims to cover both access to regulated capital and local operations.
- $100 million allocated to a PIPE vehicle about to be listed on the Nasdaq;
- $50 million allocated to an ETP that will replicate the performance of token S on regulated markets;
- Operating funds to strengthen the USA structure, which include the allocation of 150 million S tokens to cover startup and development expenses.
In this context, Sonic Labs is preparing for a decisive step towards traditional finance. It should be noted that further details on the vesting and lock-up mechanism will be made public in upcoming announcements.
Expansion in the United States: structure, team, and objectives
The plan involves the establishment of Sonic USA LLC, with an operational team in New York that will focus on building relationships with regulators and institutional investors. The goal is to align on-chain governance with traditional finance standards, accelerating institutional adoption and facilitating access to regulated capital. In this context, the compliance component becomes central to the process of entering the United States market.
Tokenomics 2025: fee, burn, and deflationary pressure
To overcome the limitations of the previous phase, Sonic Labs initiates a revision of the network fees structure and introduces a more incisive burn, with the aim of containing dilution and supporting value for long-term holders. The adjustment is technical but with effects that, if confirmed, could be felt in the medium term.
Programmed Deflation
- The gas fee is redesigned to allocate a larger portion of the fees to the burn with each transaction;
- The burn percentages are integrated via smart contract on a per-transaction basis;
- Dynamic mechanisms related to network usage will be adopted to maintain deflationary pressure during periods of increased activity.
Quantitative Scenarios (illustrative example)
- With an average burn equal to 0.15% of the fees and assuming 1 million daily transactions, the burn rate would increase in proportion to the network’s throughput, partially alleviating the selling pressure.
- The impact of the 150 million tokens allocated to the US division will depend on the total supply: for example, in the case of an overall supply of 1 billion tokens, they would represent 15%; if the supply is 2 billion, 7.5%; while with 5 billion, only 3%. The actual dilution will be modulated by the mechanisms of vesting, lock-up, and the timing of the burn.
TradFi Instruments: PIPE on Nasdaq and ETP with BitGo Custody
The new design by Sonic Labs integrates traditional finance (TradFi) with blockchain through two fundamental pillars. The aim is to provide regulated access, with tools familiar to institutional desks, minimizing operational frictions.
- A PIPE in the process of listing on the Nasdaq, designed to attract regulated capital into the ecosystem;
- An ETP issued by a regulated provider managing over $10 billion in assets, with custody entrusted to BitGo for the underlying assets.
This combination aims to offer greater accessibility and transparency to institutional investors, promoting better price discovery and greater trading depth on regulated markets. It should be noted that the effectiveness will also depend on actual demand and the quality of replication.
Macro on-chain data: oracles for GDP, inflation, and risk
Sonic Labs intends to integrate macroeconomic feeds through oracles like Chainlink and Pyth – for example, for data on GDP, inflation, and consumption – to enable protocols to build products for credit, derivatives instruments, and risk management systems based on official data, thereby consolidating the pricing and reliability of collateralization models. In this context, the goal is to reduce the information gap between on-chain and macro markets.
Market Impact and Operational Context
Impact on Price and Liquidity
The integration with regulated tools tends to reduce barriers for institutional investors and can help increase market liquidity. According to CoinGecko, the S token had recorded a decline from the highs at the beginning of the year; the new architecture could improve the perceived risk profile and stimulate volumes in the upcoming market updates. Naturally, the response from operators will depend on implementation and timing.
Regulatory Risks
- Compliance USA: Interaction with the SEC, FINRA, and Nasdaq listing standards requires high standards in terms of governance and disclosure.
- ETP Structure: the documentation, custody, and replication methodology must comply with strict prudential and transparency requirements.
- Token classification: potential regulatory interpretations on the status of token S could influence allocations and demand from institutional investors.
Next Steps
- Operational establishment of Sonic USA LLC and hiring of local management;
- Technical definition and publication of parameters related to on-chain fees and burn, with publicly auditable mechanisms;
- Presentation of the formal documentation related to the PIPE and the ETP with a detailed roadmap and timeline.
Legal Context
Sonic Labs is currently involved in a legal matter that has led to the liquidation of Multichain Foundation Ltd. Following the 2023 breach, the High Court of Singapore issued a winding-up order on May 9, 2025, after a petition filed by Sonic Labs (Blocmates). These developments have resulted in a reorganization of the project’s legal and operational priorities, also impacting internal compliance flows.
Key Numbers
- Total issuance amount: $200 million in S tokens;
- Allocation PIPE: $100 million;
- Allocation ETP: $50 million;
- Tokens reserved for the USA division: 150 million S (with vesting and lock-up mechanisms to be defined).
What Changes for the Sonic Ecosystem
The operation marks a crucial transition from an exclusively crypto model to a convergence where traditional finance integrates with the on-chain infrastructure. The combination of regulated instruments, deflationary measures, and integration of macroeconomic data aims to promote institutional adoption and generate new regulated liquidity, while also safeguarding long-term holders. Ultimately, it is a path of alignment between governance, market, and transparency requirements.
Source: https://en.cryptonomist.ch/2025/09/01/sonic-gets-the-green-light-for-the-200-million-plan-etp-on-the-way-and-entry-into-the-usa-what-changes-for-the-s-token/