After 70% Price Crash, Sonic Rewrites Tokenomics for 2025

Instead, the new S token has dropped nearly 70% since January, leaving the team with a structural handicap: too few tokens under its own control to compete with rival blockchains.

Now, Sonic is rewriting its playbook.

From Deficit to Aggression

Most layer-1 projects keep around half of their token supply for strategic initiatives. Sonic, by contrast, inherited less than 3% from Fantom. That left the project scrambling to buy tokens on the open market whenever opportunities arose. Leadership admits that the model belongs to “2018 tokenomics” and insists a reset is essential if Sonic is to chase partnerships with major companies and financial institutions.

The reset will come in the form of a $200 million allocation of S tokens earmarked for U.S. expansion. Community members overwhelmingly approved the plan, with more than 700 million tokens voting and 99.99% support recorded.

Entering Wall Street’s Backyard

Rather than focusing solely on crypto-native strategies, Sonic wants to integrate directly with traditional finance. The new blueprint includes:

Building a PIPE (private investment in public equity) reserve on Nasdaq. Launching a token-tracking exchange-traded product with a major ETF provider managing over $10 billion in assets. Establishing Sonic USA LLC, complete with a new executive team in New York and policy outreach in Washington, D.C.

Custody for these financial products will be handled by BitGo, one of the industry’s leading regulated custodians.

Trying to Fix the Supply Problem

To offset the impact of issuing new tokens, Sonic will modify its gas fee structure so a greater share is burned, introducing stronger deflationary pressure over time. The team hopes this will reassure holders that expansion won’t come at the cost of endless inflation. “We need 2025 tokenomics,” Sonic explained, casting the plan as both survival and ambition.

A Price to Pay

So far, the market hasn’t rewarded Sonic. Its S token has been one of the worst performers among newer layer-1s. But insiders argue that Wall Street exposure, combined with fresh token economics, could shift sentiment in 2025.

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