Sonic Labs, the rebranded Fantom Foundation behind the high-speed, EVM-compatible Sonic chain, has officially made its entry into the U.S. market. On August 31, 2025, the company’s DAO passed a sweeping governance proposal with an epic 99.99% approval rate. The move will enable unlocking a $150 million issuance in S tokens to fund key institutional-grade initiatives, the company said on its discussion board.
How will the funds be deployed?
- $50 million to underwrite a regulated U.S. ETF/ETP, in partnership with a top-tier provider managing over $10 billion, with custody safeguards via BitGo.
- $100 million dedicated to a Nasdaq PIPE vehicle, creating a strategic reserve of S tokens locked for at least three years, aimed at enhancing liquidity and institutional confidence.
- 150 million S tokens earmarked to seed Sonic USA LLC, a Delaware-based subsidiary to be based in New York. This U.S. arm will hire a local CEO and team to spearhead partnerships, regulatory engagement, and capital markets outreach. It will also apply a performance-based compensation scheme.
Sonic Labs revamped tokenomics
Additionally, Sonic Labs is revamping tokenomics by increasing burn rate on gas fees. This will make the system more deflationary and will counteract the dilution from the token issuance.
For traditional investors, the ETF/ETP setup gives them a legal and straightforward way to invest in Sonic. It also helps organize how assets are stored, makes it easier to see what’s being held, and simplifies how shares are created or removed.
At the same time, the Nasdaq PIPE acts like a backup fund, letting Sonic raise money from public markets in a more controlled way. This supports its long-term goal of making the S token look and act more like assets that big institutions usually invest in.
Founded as the Fantom chain in 2018 and rebranded to Sonic in late 2024, the network is renowned for ultra-fast transactions (up to 400k TPS) and developer-friendly, low-cost infrastructure.