Sonic (S), formerly Fantom (FTM), has approved a $150M U.S. expansion plan, including $50M for an S-tracking ETF/ETP with BitGo custody, $100M for a NASDAQ DAT/PIPE with 3-year token locks, and the launch of Sonic USA in New York. The vote also updated tokenomics, raising supply from 3.41 billion to 3.89 billion S tokens, and introducing new gas-fee burn rules that make S more deflationary while directing up to 90% of app-generated fees back to builders.
In this article, you’ll explore how the Sonic blockchain is reshaping its growth strategy through a $150M U.S. expansion and the launch of Sonic USA in New York. You’ll also see how updated Sonic (S) tokenomics, fee-burn mechanics, and supply changes are positioning Sonic as an EVM-compatible Layer-1 built for institutional adoption in 2025.
What Is Sonic (S) and How Does It Work?
Sonic is an EVM-compatible Layer-1 blockchain built by Sonic Labs, the team behind Fantom. It focuses on speed, predictable costs, and builder revenue. This means developers can easily bring over Ethereum-based apps without rewriting their code. The network is built for speed, scalability, and user-friendly costs, making it attractive for decentralized finance (DeFi), trading platforms, and consumer apps that need near-instant settlement.
In practice, Sonic works by having validators secure the network while users pay small fees in the native S token. What makes it unique is its Fee Monetization (FeeM) model, which gives builders up to 90% of the fees generated by their apps, creating a strong incentive to build on the network. Combined with sub-second finality, this setup delivers near-instant transactions that feel like a Web2 payment app but with the transparency and security of blockchain.
On the technical side, Sonic runs on an advanced stack:
• SonicVM powers fast execution for smart contracts.
• SonicDB manages data efficiently, so apps run smoothly even under high traffic.
• The Sonic Gateway bridge connects Ethereum and Sonic. Transfers are grouped in “heartbeats,” every ~10 minutes from Ethereum to Sonic, and ~1 hour in reverse, to save costs.
• There’s also a Fast Lane option for instant transfers. Plus, a built-in 14-day fail-safe ensures that if the bridge goes offline, users can still recover their funds directly on Ethereum.
How Speed and Rewards Give Sonic Network an Edge
Sonic sets itself apart by combining sub-second finality and a claimed ~400,000 TPS with its Fee Monetization (FeeM) model, which directs up to 90% of app-generated fees back to developers. This mix of high speed and strong builder incentives makes Sonic practical for real-time payments, high-frequency trading, DeFi apps, and gaming, while offering users faster transactions and giving developers a sustainable way to grow without heavy token emissions.
Note: TPS figures are vendor-reported; investors should watch live data and validator distribution for confirmation.
Sonic (S) Greenlights $150M U.S. Expansion
Source: Sonic Network
Sonic’s community has overwhelmingly approved a $150 million U.S. expansion plan (August 20–31, 2025), signaling a bold push into traditional finance. The plan allocates $50M for an S-tracking ETF/ETP with custody managed by BitGo, a leading institutional custodian, and $100M for a Nasdaq DAT/PIPE that will purchase $S tokens on the open market and lock them for three years, showing long-term institutional confidence.
To drive these efforts, Sonic will launch Sonic USA LLC, a Delaware subsidiary with a New York office and dedicated CEO to focus on U.S. policy and partnerships. This move positions the Sonic blockchain for institutional-grade liquidity, stronger regulatory alignment, and greater visibility across both crypto and TradFi markets.
The expansion could accelerate adoption, attract capital, and deepen liquidity. Still, risks remain: the 14.2% token supply increase may dilute holders, ETF/PIPE execution depends on regulation, and throughput claims are vendor-reported. Overall, Sonic looks like a high-upside but execution-dependent Layer-1 play in 2025.
What Is the S Token Utility in the Sonic Ecosystem?
The S token is the native cryptocurrency of the Sonic blockchain, used to power transactions, secure the network, and govern protocol decisions. It powers the Sonic ecosystem and plays several important roles for both users and developers.
1. Gas & Fees: Every transaction on Sonic requires a small fee paid in S, keeping the network secure and spam-free while maintaining low costs, typically less than $0.01.
2. Staking & Validation: Holders can stake S with validators to help secure the network and earn rewards, with target yields of around 3.5% APR at 50% stake, funded initially by reallocating Opera rewards instead of new inflation.
3. Governance: Community members use S to vote on major proposals, such as tokenomics updates, FeeM distribution, or U.S. expansion plans like the ETF/PIPE initiative, giving holders a direct say in the project’s future.
What Changed in Sonic (S) Tokenomics After the Vote?
Sonic’s governance vote reshaped its tokenomics to balance institutional growth and long-term scarcity. The total supply will increase from ~3.41 billion to ~3.89 billion S tokens, adding 472 million tokens, a 14.2% growth, to circulation, while an extra $50 million in S tokens will only be minted if the ETF plan is finalized.
To manage inflation, the network raised the share of gas fees burned, tied its annual 1.5% growth mint to strict burn rules for unused tokens, and reallocated Opera’s block rewards to deliver about 3.5% APR for stakers in the early years without creating new inflation. Together, these adjustments make Sonic’s economics more predictable, deflation-leaning, and institution-ready.
How to Trade Sonic (S) Token on BingX
Whether you plan to build a long-term S position or trade volatility around governance and ETF headlines, BingX gives you flexible tools with BingX AI insights.
1. Buy or Sell S on the Spot Market
S/USDT trading pair on the spot market, powered by BingX AI insights
The spot market is the easiest way to own S directly.
1. Go to the BingX Spot page and search for S/USDT.
2. Click the AI icon on the chart to see key support and resistance zones.
3. Place a limit order near AI-identified support levels to avoid buying into sudden spikes, making your entry more cost-effective.
Learn more about how to buy Sonic (S) on BingX in our comprehensive guide.
2. Trade S With Leverage on Perpetual Futures Market
S/USDT perpetual contract on the futures market, powered by BingX AI
For more active traders, Sonic can also be traded with leverage through S/USDT Perpetual Futures.
1. Open the Futures section and select S/USDT perpetual contract.
2. Use BingX AI to track momentum, volatility, and potential trend shifts.
3. Adjust your stop-loss and take-profit levels with AI prompts to better manage risk.
Note: Futures trading carries higher risk since you can amplify both profits and losses. Beginners should start with the spot market and use low leverage cautiously.
Conclusion
Sonic’s $150M U.S. expansion marks a turning point for the project, shifting its focus from a community-driven Layer-1 into a blockchain that actively seeks institutional adoption. With plans for an ETF/ETP, a NASDAQ DAT/PIPE, and the launch of Sonic USA, the network is positioning itself to compete directly in regulated markets while offering developers unique incentives through Fee Monetization and sub-second transaction finality. Updated tokenomics, balancing supply growth with new burn mechanics, add another layer of sustainability to the ecosystem.
For investors and developers, Sonic presents both opportunity and uncertainty. The upside lies in deeper liquidity, broader visibility, and real-world use cases that could strengthen long-term adoption. However, risks such as token dilution, execution challenges, and regulatory hurdles remain important to consider. As always, do your own research, manage exposure carefully, and never invest more than you can afford to lose.
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FAQs on Sonic (S) Blockchain
1. What is Sonic (S) layer-1 blockchain?
Sonic, formerly Fantom, is an EVM-compatible Layer-1 blockchain with sub-second finality and a Fee Monetization model that returns up to 90% of app-generated fees to developers.
2. Why did the S token supply increase?
The supply of S tokens increased after the community approved a U.S. expansion plan that lifted total supply to about 3.89B, adding 472M tokens, +14.2%, to circulation. An additional $50M worth of S will only be minted if the planned ETF is officially launched.
3. What U.S. products is Sonic Labs planning?
Sonic Labs is planning a U.S.-based ETF/ETP backed by BitGo custody and a NASDAQ DAT/PIPE that will lock purchased S tokens for three years. Alongside this, it is launching Sonic USA in New York to lead institutional partnerships and regulatory engagement.
4. How do I bridge assets to Sonic network?
You can bridge assets to Sonic using the Sonic Gateway, which batches transfers in heartbeats, about 10 minutes from Ethereum to Sonic and 1 hour in reverse. For faster transfers, the Fast Lane option lets you trigger an immediate batch for a small fee.
5. What are S staking rewards?
S token's staking rewards target around 3.5% APR when 50% of the supply is staked, funded initially from pre-existing allocations. After the early years, rewards shift to new block emissions of 1.75% annually to sustain validator incentives.
6. Does Sonic support ERC-4337?
Yes, Sonic supports ERC-4337 through its Testnet 2.1, which adds Pectra alignment and smart-account features like social recovery, spending limits, and token-based gas fees, improving wallet usability and customization.