Sonic SVM Redesigns Tokenomics to Fuel Demand and Cut Circulating Supply

Sonic SVM is making a bold move to reshape how its native $SONIC token captures value.

Solana-based gaming and metaverse project Sonic SVM is making a change to its tokenomics to integrate transaction fees into a system that fuels token demand and gradually reduces circulating supply.

Instead of burning a portion of the fees as it previously did, Sonic will now use part of the fees collected in SOL to buy $SONIC on the open market. These tokens will then be locked up and released over a 24-month period.

Another portion of the fees collected in SOL 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 further incentivized, offering extra benefits to users who help deepen liquidity.

This creates a dual mechanism that constantly channels liquidity from Sonic’s ecosystem into Solana, and vice versa, strengthening their integration. It also builds up $SONIC’s liquidity and use cases within Sonic’s expanding network of games and applications.

The move builds on Sonic’s existing efforts to create a closed-loop system where every activity contributes to token value.

“We're not just pivoting; we're upgrading to optimize for maximum growth. A portion of every fee will be used to buy back $SONIC, which will be locked up and released over 24 months, creating scarcity and price pressure. Another portion will be used for creating liquidity pools and mining programs to maximize liquidity and yield for early believers and long-term supporters,” said Chris Zhu, CEO of Sonic.

This new strategy is designed to be more efficient and scalable in the long term as the Sonic ecosystem expands.

“Our goal is to ensure that as the Sonic platform grows, so does the demand for $SONIC. Every interaction with the network should reinforce the value of our token. We've built a model where growth isn't an external factor; it's an integral part of how the protocol functions,” added Alan Zhu, co-founder and CPO of Sonic.

Complete documentation and rollout details will be shared in the coming weeks as Sonic prepares to activate this next phase of its token model.