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Sonic Labs Approves $150 Million Expansion Plan
Sonic Labs has secured overwhelming community approval to fund its expansion into U.S. capital markets. The governance proposal, which passed with 99.98% approval, authorizes the blockchain firm to issue $150 million worth of its native S token to support the initiative.
The decision means Sonic Labs will move forward with plans to create a U.S.-based subsidiary, pursue a regulated exchange-traded fund (ETF), and commit $100 million toward a Nasdaq private investment in public equity (PIPE).
Details of the Governance Vote
The vote ran on Snapshot from August 20 to August 31 and attracted significant community participation. Nearly 860 million Sonic tokens were cast, surpassing the 700 million required for quorum. The final tally showed near-unanimous approval at 99.99%.
The approved allocations include:
- $50 million to back a U.S.-listed exchange-traded product (ETP/ETF).
- $100 million to support a Nasdaq PIPE reserve.
- 150 million new S tokens to strengthen the capital base of Sonic USA LLC.
This governance decision marks the first major expansion effort since Sonic Labs’ transition from its Fantom origins.
Creation of Sonic USA
As part of the proposal, Sonic Labs will establish Sonic USA LLC, a Delaware-based subsidiary with a planned office in New York. The entity will oversee regulatory compliance, institutional partnerships, and capital markets activity.
Sonic USA is expected to hire a U.S.-based CEO, along with a team focused on capital markets and business development. The move provides the structure needed for engagement with regulators and investors in the United States.
ETF Plans and Custody Solutions
A major component of the expansion involves the launch of a regulated ETF tracking the S token. Sonic Labs intends to partner with a “top-tier” ETF provider to bring the product to market.
To ensure compliance with U.S. institutional standards, the proposal also includes integration with BitGo custody solutions. Custody arrangements are a critical step for securing institutional participation in regulated investment products.
The ETF allocation of $50 million will seed liquidity and fund operations during the rollout.
Nasdaq PIPE Strategy
The proposal also designates $100 million for a Nasdaq PIPE. A PIPE is a private investment in public equity, often used to provide liquidity and strengthen balance sheets for companies listed on Nasdaq.
Funds from the PIPE reserve will be used to purchase Sonic tokens on the open market and through over-the-counter trades. Tokens acquired through this structure will be locked for a minimum of three years, aligning with long-term institutional participation.
This move aims to strengthen the token’s presence in traditional equity markets and establish credibility among public market investors.
Addressing Tokenomics and Treasury Constraints
The U.S. expansion initiative also reflects Sonic Labs’ effort to overcome long-standing tokenomics challenges. Unlike other blockchains that retained large treasury reserves, Sonic (and formerly Fantom) held only around 3% of its supply after a community-led takeover.
This limited its ability to fund partnerships, listings, and market growth. The new issuance of $150 million in tokens provides greater flexibility while also enabling new tokenomics designs.
Key updates include:
- Introducing deflationary mechanisms such as increased gas fee burns.
- Aligning token supply with long-term network demand.
- Building reserves to fund institutional adoption and expansion.
By doing so, Sonic Labs aims to balance new issuance with supply management, creating a more sustainable framework for growth.
Sonic Labs’ Position in the Layer-1 Landscape
Sonic is an EVM-compatible Layer-1 blockchain that launched its S token in August 2024, following its rebrand from the Fantom Foundation. The network emphasizes performance and scalability for decentralized applications while retaining compatibility with Ethereum tooling.
The new U.S. initiative is designed to bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi). Sonic Labs wants to align its blockchain ecosystem with institutional standards by launching an ETF, integrating custody solutions, and pursuing the Nasdaq PIPE.
Community and Institutional Interest
Sonic Labs highlighted in its proposal that institutional demand for the S token has been steadily increasing, particularly in the U.S. The expansion plan responds directly to this trend, positioning Sonic as a blockchain project willing to engage directly with capital markets.
The establishment of Sonic USA and partnerships with ETF and custody providers are expected to provide regulatory clarity and access to new pools of liquidity.
Conclusion
The passage of Sonic Labs’ $150 million governance proposal marks a pivotal step in its expansion strategy. By creating Sonic USA, seeding a regulated ETF, and pursuing a Nasdaq PIPE, the company is preparing to engage directly with U.S. capital markets.
The initiative also addresses past treasury limitations by modernizing tokenomics, adding deflationary mechanisms, and building reserves to support long-term adoption. With community backing secured, Sonic Labs is moving ahead with its plan to establish a stronger presence in both decentralized and traditional finance.
Resources:
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Sonic Labs passes $150 million proposal to expand into US capital market by The Block: https://www.theblock.co/post/368861/sonic-labs-passes-proposal
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Sonic Labs proposal to issue $150 million: https://snapshot.box/#/s:info.sonic/proposal/0x489f1583b2db1e6e752404626283249223a1dbfb7337f4fb7dbaf28b1da1b759
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Sonic Labs Official Documentation: https://docs.soniclabs.com/