Sonic (token) is a high-throughput Layer 1 blockchain compatible with the Ethereum Virtual Machine (EVM). It is designed to support decentralized finance (DeFi) applications by offering fast transaction speeds (up to 400,000 transactions per second) and sub-second finality. The platform's native asset, the S token, is used for transaction fees, staking, validator operations, and governance participation. ^[1]

Overview

The Sonic token is a Layer 1 blockchain designed to address scalability and performance requirements for decentralized applications. It introduces features such as Fee Monetization, a secure Ethereum gateway, and streamlined staking to support a developer-oriented ecosystem. The network is capable of processing up to 900 million ERC-20 transactions daily with sub-second confirmation times. By providing high-throughput infrastructure and adjusting incentive structures, Sonic focuses on facilitating efficient on-chain economic activity and broader blockchain integration. ^[2]

Migrating & Block Rewards

As validator operations transition from Fantom Opera to Sonic, validator rewards are being reallocated accordingly. Opera validators were originally set to receive block rewards for several more years; however, these rewards are being gradually reduced as participants migrate to Sonic. The saved rewards are redirected to support Sonic validators, while the Sonic Foundation continues to maintain Opera validators during this transition.

Sonic targets a 3.5% annual percentage yield (APR) for validator rewards. To maintain this rate without immediate inflation, block rewards from Opera’s remaining FTM supply are being transferred to Sonic. These rewards are already accounted for in Sonic’s initial token supply of 3.175 billion S tokens. At launch, the circulating supply will be approximately 2.88 billion, with the remaining tokens, around 70 million annually, allocated to validator rewards over the first four years.

No new S tokens will be minted for block rewards during this initial period. After four years, new issuance will resume at an annual rate of 1.75% to continue supporting validator incentives. Opera’s APR will drop to zero at Sonic’s launch as part of this shift. ^[2]