- Sonic Labs focuses on strengthening the value of its S token.
- Sonic plans to build and acquire core applications and infrastructure, with integrated revenue streams.
Sonic Labs, the blockchain development company formerly known as Fantom Foundation, announced that it is going to focus on measurable value creation by building and acquiring products that directly strengthen the value of the S token.
The article, published on X by Sonic Labs on February 11, titled “Vertical Integration: The Missing Link in L1 Value Creation,” explained that Sonic is changing away from its traditional Layer 1 growth model, which focused on expansion that generates activity but fails to produce lasting economic value
Sonic team said, “We are evolving Sonic into an ecosystem where core infrastructure, applications, and liquidity are intentionally aligned around reinforcing the S token’s economics. This alignment is designed to ensure that usage, liquidity, and incentives translate directly into sustained demand for the S token.”
Gas Fee Model Faces Pressure
Sonic believes that relying solely on gas fees to generate value is becoming less successful. As more blockchains are coming and scaling technology advances, blockspace becomes more accessible and less scarce. This increased competition is pushing transaction prices lower. So, Layer 1 networks struggle to create lasting value, even if they host a lot of activity.
So, the Sonic team stated, “This is why the next chapter of Layer 1 evolution is not just about scalability. It is about vertical integration: a protocol’s ability to own, internalize, and monetize its most important economic activities.”
For that, Sonic cited successful examples like Hyperliquid, which designed the main trading application to be the chain itself, so that each trade and fee directly benefits the HYPE token. According to Sonic, vertical integration allows for this type of design
Vertical Integration: Building Core Applications and Infrastructure
In order to execute, “Sonic will acquire and integrate high-quality application teams from across the industry to develop foundational ecosystem primitives in-house.” Where that application will handle trading, lending, payments, settlements, credit systems, and risk markets. With that, it will ensure that the value created doesn’t leave Sonic, noted in the article.
Also, Sonic Labs noted that its existing Fee Monetization system, FeeM, could be integrated with apps to help the network scale more, while boosting the S token ecosystem
Further, these revenue sources, which are fueled by actual income from integrated core applications and infrastructure that grow with the network, can fund long-term buybacks of the S token
Before Sonic, this buyback plan was recently approved by the Ethereum Layer 2 Optimism, it would redirect 50% of the ecosystem’s revenue toward OP token purchases
Highlighted Crypto News Today:
Hoskinson Confirms Midnight Mainnet Launch in March
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Solana Foundation Launches Token Search and Liquidity Aggregator Tokens on Solana
The Solana Foundation has launched Tokens on Solana, a token search and liquidity aggregator that consolidates various token variants of non-native assets, offering a one-stop search function and key data to help users identify the best trading opportunities. Additionally, it will utilize AI and manual curation to publish global news.
GateNews2h ago
Crypto Research Platform Messari CEO Resigns Abruptly, CTO Diran Li Takes Over and Announces Layoffs
Prominent cryptocurrency market research platform Messari announced CEO Eric Turner's resignation, with Chief Technology Officer Diran Li taking over. The company is conducting layoffs to accelerate its transformation into an AI-first research platform. The layoffs accompany leadership changes aimed at focusing on serving institutional clients. The market continues to monitor Messari's future performance as it transitions to AI-driven services.
動區BlockTempo2h ago
Neutron will transition to long-term maintenance mode, with multiple products gradually being discontinued.
Neutron has announced a shift to long-term maintenance mode, banning new deposits and planning to deactivate the DEX. dNTRN can be exchanged for NTRN. The token supply will be adjusted dynamically. Hadron Labs will transition to community support after June 30th. The team made this decision due to worsening market conditions and a lack of strategic direction.
GateNews2h ago
Metaplex advances Korean Wave IP onto the blockchain, with K-pop and Korean dramas moving toward blockchain assetization
Metaplex Foundation has signed a Memorandum of Understanding with K Wave Media to jointly advance the "Gaon Project," which will transition K-pop, Korean dramas, and other Korean Wave cultural intellectual properties on-chain. The project encompasses four core pillars: intellectual property on-chain, global liquidity, fan community empowerment, and content distribution, with the aim of innovating the tokenization of Korean cultural IP and exploring new financing and content distribution models.
MarketWhisper2h ago
StableStock Launches Hong Kong Stock Trading Features, Supporting Stablecoin Direct Trading of 160+ Hong Kong Stock Targets
On March 17, StableStock launched Hong Kong stock trading functionality, supporting 160+ Hong Kong stocks and ETF trading, allowing users to trade directly with stablecoins. The platform partners with licensed broker HabitTrade, with fees close to traditional brokers, and complies with Hong Kong Exchanges and Clearing Limited trading hours.
GateNews3h ago
Privy Launches "Balance Rewards" Feature Powered by Morpho
Gate News report: On March 17, privacy wallet infrastructure platform Privy launched its "Balance Earnings" (Earn) feature. The feature is powered by Morpho, with risk strategies provided by Steakhouse Financial and Gauntlet, and will support Aave and Kamino in the future. The official statement indicates that users can deposit their application balances into curated DeFi vaults with just a few
GateNews3h ago
