Sonic’s Deflationary Strategy: Will Developer Rewards Surpass Market Fluctuations?
- Sonic Labs, under new CEO Mitchell Demeter, is prioritizing deflationary tokenomics and ecosystem growth through a revised fee monetization system. - The updated FeeM model allocates 15-90% of fees to developers, 10% to validators, and burns remaining funds to reduce S token supply. - S token (S) trades at $0.14 with $546.8M market cap, while Sonic's TVL fell to $126.65M from $1B peak despite 370,000 TPS capacity. - Demeter emphasizes U.S. expansion, Ethereum/Solana competition, and institutional engagem
Sonic Labs, which operates the EVM-compatible Layer 1 blockchain
Under the revised FeeM model, builders receive between 15% and 90% of network fees depending on transaction volume, validators are allocated a fixed 10%, and the rest is burned, as reported by
Demeter’s vision goes beyond tokenomics. Sonic intends to implement
This strategic pivot mirrors a wider industry movement toward foundational value. "This cycle will be shaped by strong fundamentals, transparent economics, and reliable execution," Demeter remarked, contrasting with the speculative nature of earlier market cycles, as noted by
The community’s response has been cautiously positive. Analyst zethesx observed that allocating up to 90% of fees to developers could "benefit the future" by making $S more deflationary, as per
Looking forward, Sonic Labs aims to broaden its international presence by enhancing developer resources, forming institutional collaborations, and launching educational programs through its GMSonic platform, as highlighted by
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Self-driving truck company Einride intends to enter the public market through a SPAC merger
Teradar secures $150 million for a sensor it claims outperforms both lidar and radar
The MMT Token TGE and Its Impact on DeFi Market Trends
- Momentum (MMT) token's 2025 TGE secured $10M funding from Coinbase Ventures, OKX, and Jump Crypto, valuing it at $100M. - Binance allocated 0.75% genesis supply via HODLer Airdrop, while post-TGE price surged 1330% from liquidity incentives. - Divergent from traditional MFS Multimarket Income Trust (NYSE: MMT), the DeFi token faces volatility risks despite institutional interest. - Strategic entry points for institutions hinge on regulatory clarity, utility validation through RWA integrations, and liquid

Pi Coin’s Balancing Act: Will It Surge to $0.25 or Drop Down to $0.15?
- Pi Coin (PI) rebounds 3% weekly but remains fragile after a 44% three-month decline, with MACD flattening near critical bearish crossover levels. - Node update 0.5.4 and AI collaboration with OpenMind aim to boost utility , yet weak OBV and Chaikin Money Flow (-0.0026) highlight liquidity challenges. - Price hinges on breaking the $0.23 symmetrical triangle: a close above targets $0.25, while a drop below $0.20 risks revisiting $0.15 amid broader crypto market consolidation.
