Sonic Labs has announced plans to enter the US market after receiving near-unanimous community approval for the issuance of its S tokens.
Community Vote Results
The community vote, which closed on Sunday, showed 99.99% support from 105 participating wallets. More than 700 million tokens were involved, which allowed the proposal to easily meet the quorum. After the vote, Sonic stated, "Sonic is coming. Governance passed. Stay tuned."
Sonic Labs' Plans for US Expansion
Sonic aims to back a PIPE (Private Investment in Public Equity) vehicle with S tokens worth $100 million and allocate another $50 million for the creation of an ETP (Exchange Traded Product), which will be custodied by BitGo. According to the company, the ETP is set to be issued by a prominent regulated ETF issuer with significant assets under management.
Changes to Gas Mechanism and Prospects
Sonic is also working on altering its gas mechanism to handle the new token issuance, which will burn a larger percentage of fees, thus creating long-term deflationary pressure. This improvement will enable interaction with traditional financial instruments. However, the S token has lost about 69% of its value since January 2023.
In conclusion, Sonic Labs demonstrates an ambitious approach to expanding its operations in international markets, which may alter the dynamics of its token and strengthen the company's position.
