On May 19, 2025, Sonic SVM announced an upgrade to its tokenomics, introducing a new SONIC token value accumulation mechanism that replaces the previous burning model.
Transition to Buy-and-Lock Strategy
Sonic SVM has adopted a buy-and-lock system, replacing its previous token burning approach. Now, 50% of transaction fees will be used to purchase SONIC tokens from the market, locking them for a 24-month period. This new tokenomics strategy aims to create market demand and reduce supply, while the SOL collected as fees will be staked on the Solana mainnet to enhance liquidity and provide incentives to Sonic SVM's liquidity providers. CEO Chris Zhu highlighted the importance of building long-term value.
SONIC Token Dynamics Post-Change
According to CoinMarketCap, the SONIC token traded at $0.32, with a 24-hour trading volume surging by 62.47% to $105,992,482.51. The price increased by 7.74% over 24 hours but dropped by 4.70% over the week. However, a 30-day gain of 36.16% outperformed recent historical movements. Market reactions are being closely monitored as the Sonic SVM ecosystem adapts to its new tokenomics model.
Future of Sonic SVM and Market Impact
The upcoming SVM Summit, scheduled for May 21 in New York City, will provide further insights into the implications of these changes for the Solana network and discussions on scaling possibilities. The cryptocurrency community will be closely watching how Sonic SVM's market integration progresses in the coming weeks.
The redesigned tokenomics mechanism of Sonic SVM represents a significant move towards strategic management of token value, with potential to enhance financial stability and stakeholder engagement within the Solana ecosystem.
