Sonic Labs launches governance proposal to expand into U.S. markets, create $S ETF, update tokenomics, and boost global competitiveness.
Sonic Labs has officially launched its first governance proposal aimed at expanding into the U.S. capital markets. This market is a significant move involving a proposal to list a regulated exchange-traded product (ETP) or fund (ETF) which tracks the value of its token, $S. The company announced the news on its X (formerly Twitter) account on August 20. The change is an important step in the history of Sonic Labs, which is redefining its new, U. S-oriented strategy after its past existence known as Fantom.
Sonic Labs Unveils Multi-Pronged Plan for U.S. Market Entry
Sonic Labs is planning to put together a multi-pronged strategy to help it support this expansion. The key elements to it are a PIPE (Private Investment in Public Equity) launch to raise capital. This will enable Sonic Labs to buy S tokens on an open market and enhance its stake in the conventional finance realities. Also, the firm is collaborating with a popular digital asset custodian, BitGo, in order to handle the involved financial products in a safe way. A key ETF provision company will also join in this attempt.
Under the U.S. entry, Sonic Labs is establishing a new company, Sonic USA. The division will be based in New York City and the division will have a new CEO and a new team based in the United States. The focus will be on expanding the U.S. market share and enhancement of relations with regulators, institutions and investors. The governance proposal asks permission to issue new tokens to specifically create the ETF, PIPE and the Sonic USA project.
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Sonic Labs is offering the community two voting options. The initial alternative is to authorize the issuance of new tokens to the value of a $50 million ETF allocation, a $100 million PIPE, and 150 million $S tokens to help finance the activities of Sonic USA. The second alternative is to decline all proposals of issuances. Sonic Labs states that these tokens will exclusively be allocated to the noted financial products and expansion initiatives in the U.S. and all allocations will be publicly traced on-chain.
Sonic Labs Moves to Align Tokenomics with Market Demands
The proposal also consists of modifications to the network fee and the burn of Sonic. The update will ultimately render the $S token deflationary in the long run by raising the amount of transaction fees burned as a percentage. This will positively affect the holders of tokens because it will decrease the total supply of $S.
Sonic Labs underlined the idea that their tokenomics are obsolete. The initial design, in 2018 as the Fantom brand, was to be a fully decentralized layer-1 blockchain. Sonic Labs today feels that a more contemporary tokening organization is required to survive. Most of the people in the same position as Sonic can command large proportions of their token supply, which enables them to act more rapidly and to forge more strategic partnerships. However, none of Sonic is currently under the control of Sonic itself.
Through these, Sonic has developed good technology and community following. By making this proposal the team is looking to open the world of conventional finance to a whole new world of opportunities and provide Sonic with the means to compete globally. This proposal is now live on the vote and all token holders can vote on it.
