Sonic Labs Pivots From Speed To Survival With Business-first Strategy

Sonic Labs’ strategic shift aims to bring “measurable, lasting value” for builders, validators and S token holders through upgraded fees, token burns and institutional partnerships.

Sonic Labs, the organization behind the Sonic layer-1 blockchain, announced a major strategic shift as it pivots from emphasizing transaction speed to building long-term business value and token sustainability.

After claiming industry-leading performance last year, Sonic Labs said its next chapter will focus on upgrades that deliver measurable financial outcomes, including new Ethereum and Sonic Improvement Proposals (EIPs and SIPs), token supply reductions and revamped rewards for network participants.

“Every decision we make moving forward will be guided by the principles of building real value, with price, growth, and sustainability always in focus,” said Mitchell Demeter, the new CEO of Sonic Labs.

The focus aims to bring “measurable, lasting value” for builders, validators and tokenholders, wrote Demeter in a Tuesday X post. “Our mission at Sonic is to move beyond hype and build a sustainable business model for a layer one, that creates, captures, and returns real value to tokenholders.”

The new fee monetization upgrade will include a tiered reward system for builders and fixed rewards for validators.

Sonic Labs will also increase the rate of programmatic Sonic (S) token burns, which means permanently removing tokens from circulation to tighten the supply.

Sonic claims to be the world’s fastest Ethereum Virtual Machine (EVM) chain, with a “true” finality of 720 milliseconds (ms) — the assurance that a transaction is irreversible, which occurs after it is added to a block on the blockchain ledger.

The project has garnered attention in the crypto industry since its testnet achieved a 720 ms finality on Sept. 8, 2024.

Related: Bitcoin ETFs roar back with $524M inflows in best day since market crash

Source: CoinTelegraph