Sonic community members have recently voted in favor of an ambitious plan to expand their presence in the United States and establish stronger connections with traditional finance institutions. This decision was made following a successful proposal that garnered support from over 860 million S tokens, surpassing the required quorum level of 700 million tokens.
One of the key initiatives outlined in the approved plan is the creation of Sonic USA LLC, a specialized entity that will focus on regulatory compliance, market entry strategies, and investor relations within the US market. This subsidiary has been granted the authority to issue 150 million tokens and facilitate a $100 million private investment in public equity (PIPE) tied to Nasdaq markets.
The funds raised through this investment will be utilized to bolster Sonic’s balance sheet, enable the launch of a listed vehicle, and provide liquidity for the acquisition of S tokens through both public exchanges and private transactions. Additionally, $50 million has been set aside for the development of an exchange-traded fund (ETF) linked to the S token, with plans to collaborate with a reputable ETF provider managing over $10 billion in assets. BitGo has been selected as the custodian for institutional insurance and security measures.
To ensure alignment with long-term investors, tokens allocated for these initiatives will be locked for a minimum of three years. This measure aims to incentivize commitment and stability within the network.
In parallel with the US expansion, the Sonic community has also approved changes to the fee distribution mechanism on the network. Under the updated framework, 90% of revenue generated from FeeM transactions will be allocated to builders, 5% to validators, and the remaining 5% will be permanently removed from circulation. For non-FeeM activities, 50% of the revenue will be distributed to validators, while the remaining 50% will be burned.
By implementing these adjustments, Sonic seeks to mitigate inflationary pressures and transition towards a deflationary supply model. Supporters of the network believe that these changes will incentivize active participation and enhance long-term value for token holders.
With these developments in place, stakeholders are hopeful that Sonic’s digital asset will experience a positive trend, amidst a challenging market environment where the token has depreciated by more than 60% over the past year. The community remains optimistic about the future prospects of Sonic as it embarks on this new phase of expansion and innovation.