Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Sonic’s Deflationary Strategy: Will Developer Rewards Surpass Market Fluctuations?

Sonic’s Deflationary Strategy: Will Developer Rewards Surpass Market Fluctuations?

Bitget-RWA2025/11/12 10:40
By:Bitget-RWA

- 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

, has announced a new direction under its recently appointed CEO, Mitchell Demeter, focusing on core principles, deflationary token economics, and expanding its ecosystem. In a November 11 post on X, Demeter introduced an updated fee monetization (FeeM) framework aimed at incentivizing developers, validators, and token holders, while also decreasing the circulating supply of Sonic’s native token, S, according to .

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

. This approach is designed to create a deflationary mechanism, aligning long-term interests for all participants.
Sonic’s Deflationary Strategy: Will Developer Rewards Surpass Market Fluctuations? image 0
Demeter stated, "Our objective is to boost deflation and reinforce long-term value alignment," noting that the proposal will be put to an onchain governance vote, as mentioned by . The S token, currently valued at $0.14 with a market cap of $546.8 million, as per , has experienced mixed results, falling 2.21% over the last 24 hours.

Demeter’s vision goes beyond tokenomics. Sonic intends to implement

Improvement Proposals (EIPs) and launch its own Sonic Improvement Proposals (SIPs) to improve developer experience and cross-chain compatibility, according to . The CEO also highlighted plans for U.S. expansion, including opening a New York office to strengthen relationships with institutions and policymakers, as reported by . These initiatives are part of a broader strategy to establish Sonic as a "developer-centric ecosystem" that can rival Ethereum and , according to .

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

. Sonic’s Total Value Locked (TVL) is now $126.65 million, down from its $1 billion high in May 2025, according to . Despite this drop, the network currently handles 370,000 transactions per second with finality in under a second, a significant increase from 10,000 TPS during its Fantom phase, as reported 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

. Meanwhile, Route2FI commended Demeter for recognizing the importance of price, stating, "It’s encouraging to see the new CEO acknowledge that the value of $S is significant."

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

. Demeter stressed the importance of "disciplined execution" for lasting growth, emphasizing that price stability will result from "consistent performance" rather than speculative trading, as reported by .

0

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.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

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

Bitget-RWA2025/11/12 11:58
The MMT Token TGE and Its Impact on DeFi Market Trends

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.

Bitget-RWA2025/11/12 11:56
Pi Coin’s Balancing Act: Will It Surge to $0.25 or Drop Down to $0.15?