The layer-1 blockchain aims to restore investor confidence through token burns, fee restructuring, and institutional outreach.


Sonic Labs transitions from performance hype to value creation

Sonic Labs, the organization behind the Sonic layer-1 blockchain, has announced a strategic pivot from its previous emphasis on transaction speed to a business-first model built around financial sustainability and long-term growth.

The move marks a major shift in direction for the network that once branded itself the “world’s fastest EVM chain,” achieving a 720-millisecond finality on its testnet in 2024.

Now, under new leadership, CEO Mitchell Demeter said the company is refocusing on profitability, stability, and measurable value for its ecosystem participants — including builders, validators, and S token holders.

“Every decision we make moving forward will be guided by the principles of building real value, with price, growth, and sustainability always in focus,” Demeter stated in an X post on Tuesday.


Monetization and tokenomics overhaul

The new phase of Sonic Labs’ roadmap will introduce Ethereum and Sonic Improvement Proposals (EIPs and SIPs) targeting fee optimization and token supply control.
Key elements include:

  • A tiered fee reward system for builders and fixed validator rewards;
  • Programmatic token burns, reducing the circulating supply of S tokens to strengthen long-term value;
  • Upgraded incentives aligned with transaction volume and network utility.

Demeter emphasized that the company’s goal is to move beyond hype cycles and design a “sustainable business model” capable of capturing and redistributing real economic value within the Sonic ecosystem.

“Our mission is to build a blockchain that creates, captures, and returns real value to tokenholders,” Demeter said.

: Mitchell Demeter


Institutional expansion and policy engagement

Alongside the technical revamp, Sonic Labs announced the opening of a New York office — signaling a push toward institutional partnerships and policy engagement in the United States.

“Part of this expansion includes building out our institutional sales arm to engage investors and enterprise partners looking to adopt blockchain infrastructure,” Demeter added.

This institutional focus comes amid a steep 80% decline in S token value since the project rebranded from Fantom in January 2025, with a further 20% drop in the past month, according to data from Nansen. “Smart money” traders have reportedly sold more than $245 million worth of S tokens in recent weeks.

S/USD, all-time chart

While the S token’s price slump remains a concern, Sonic Labs’ leadership insists that price recovery will follow structural progress. The project’s latest strategy — centered on fee efficiency, supply reduction, and institutional integration — marks a clear effort to stabilize the ecosystem and transition from speed to survival.

If successful, Sonic Labs could emerge as a model for how layer-1 networks evolve from technical outperformance to sustainable economic value, redefining what blockchain maturity looks like in 2025 and beyond.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.

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