Sonic Labs unveils fee monetization system to drive native token deflation
Sonic Labs introduced a new FeeM structure to burn remaining transaction fees, aiming to create deflation for its native S token.Summary
Sonic Labs, led by CEO Mitchell Demeter, has unveiled a refined tokenomics model featuring an updated Fee Monetization (FeeM) structure designed to promote deflation for its native S token. The new system allocates tiered rewards for builders (15% to 90% based on usage) and a fixed 10% to validators, while the remaining transaction fees paid in S tokens will be burned. This burning mechanism is intended to strengthen long-term value alignment and increase deflation. Demeter also noted upcoming changes, including a U.S. expansion approved by governance, the adoption of select Ethereum Improvement Proposals (EIPs), and the introduction of Sonic Improvement Proposals (SIPs) to enhance developer usability. These strategic shifts aim to move Sonic from focusing on performance benchmarks to achieving fundamental, business-oriented growth.
(Source：The Block)