Altcoins continue to introduce innovative system proposals to enhance their ecosystems. Following Uniswap (UNI)’s recent launch of a massive token burn system, Sonic Labs has now announced its own new token burn mechanism.
Sonic Labs, formerly known as Fantom before rebranding as Sonic and launching the “S” token last year, revealed plans for a novel fee monetization system designed to burn tokens while rewarding developers.
According to a statement by Sonic Labs CEO Mitchell Demeter, the company intends to implement a deflationary token economy model for its native token, “S.” This model will be based on token burns generated from fee income. It incorporates tiered fee rewards for builders and validators, alongside token burns to create deflationary pressure.
Under the proposed system, a portion of transaction fees—ranging from 15% to 90%—will be distributed as rewards to network developers. Validators will receive a fixed 10% allocation, with the remainder of the fees being burned. This approach aims to support ecosystem growth by incentivizing both developers and validators.
Demeter emphasized the company’s vision, stating, “We aim for Sonic to be not only the fastest but also the most functional and developer-friendly network. Our goal is to increase deflation and strengthen long-term value alignment.”
The new token burn system will be subject to formal approval through an on-chain governance vote. Once presented to the community, the proposal will go live only if the vote passes. However, no specific timeline has been provided yet for when the community vote will take place.
This move follows a trend similar to Uniswap’s recent large-scale burn system for its native token, UNI. Uniswap’s burn, which was planned to eliminate 10% of the total supply, reportedly contributed to a price surge of more than 30% within a single day.
*This article is for informational purposes only and is not investment advice.*
https://bitcoinethereumnews.com/crypto/winds-of-change-in-altcoins-after-uniswap-uni-another-surprise-altcoin-announces-its-deflationary-move/
