Fantom’s migration to Sonic is now underway, putting the platform under the spotlight which caused FTM, the native token of Fantom, to jump. According to CoinGeckoFTM gained more than 17% since last week, representing the hype their network migration caused within the community.
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The new Sonic Labs is poised to continue Fantom’s legacy as four core proposals are now underway for the eventual release of the Sonic mainnet. If passed, the proposals will provide users and developers with a smooth transition to the Sonic network once D-day arrives.
Core Proposals Promise Smooth Transition To Sonic
According to the Sonic Labs X account, four proposals will affect the user experience during the switch to the Sonic network. The most notable is the proposed one-to-one ratio between FTM and $S, the native token of the new network. The new token will act like the old FTM token, with 3,175,000,000 $S tokens on Genesis Day.
With @MessariCrypto‘s Q2 2024 report, we looked back at the latest quarter in the world of #Sonicincluding 4 governance proposals:
💵 190.5M $S Airdrop
🚀 $FTM to $S Compatibility
💰 Ongoing Funding
👥 Validators/Builders
Let’s explore the report 👇 pic.twitter.com/Sypi35TTF4
— Sonic Labs (prev. Fantom) (@0xSonicLabs) August 13, 2024
As a general “thank you” gesture to Opera users, the platform will allocate over 190,500,000 $S tokens to airdrop. The airdrop also has safeguards to protect the market from a sudden influx $S tokens. It will have a burn mechanism that penalizes users who choose to claim their airdrop position on day 1, burning almost 100% to 88.9% of the tokens vested for the user.
This gives users time to contribute to the overall on-chain activity while providing a guaranteed long-term gain. The new users are also eligible to receive the airdrop once the network is released.
4️⃣ Validators/Builders
This proposal approved:
✅ Validator rewards migrated from Opera to #Sonic
🚀 Apps in GasM can earn up to 90% of gas with a new burn model
💰 Ecosystem Vault funds allocated to @SonicCouncil
🔒 14-day staking lock-up period
— Sonic Labs (prev. Fantom) (@0xSonicLabs) August 13, 2024
Funding for the new network is also secured as they allocate 47,625,000 $S tokens for running Sonic Spark and Sonic University, providing developers the know-how to build on the platform. To ensure zero wastage of the funds, Sonic will burn the remaining funds if not used within a specified time frame. For example, if only half of the whopping 47,625,000 $S tokens were used, the other half would be burned to protect the integrity of the network while ensuring the funds are not wasted.
FTMUSD trading at $0.37 on the 24-hour chart: TradingView.com
Validator rewards will also be migrated from Opera to Sonic to promote the use of the network while protecting $S from too much inflation in the first four years.
FTM Price To Stabilize On This Level Ahead Of Sonic Network Launch
As of press time, the token is struggling to flip the $0.3689 ceiling to support which is crucial for the bulls in the long term.
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Although the token is seemingly slowing down, the market’s general positivity will pick up in the coming days, pushing bears off of the FTM market. This will open the opportunity to retake $0.3689 in the short term while providing the bears a solid support level to take $0.4855 in the long term.
Featured image from Zipmex, chart from TradingView
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