Sonic Labs launches fee monetization system to drive native token into deflationary mechanism

ChainCatcher reported that Sonic Labs CEO Mitchell Demeter has announced the launch of a new Fee Monetization (FeeM) system to implement a deflationary model for its native token S. This system establishes a tiered reward mechanism for ecosystem builders, with reward ratios ranging from 15% to 90% depending on network usage. Validators will receive a fixed 10% share of transaction fees, while the remaining portion will be burned. Transaction fees on the Sonic chain are paid in S tokens.

Demeter stated that this move aims to incentivize both developers and validators while strengthening long-term value through token burning. He pointed out, "Our goal is to increase deflationary strength and reinforce long-term value alignment." The system will be officially implemented through on-chain governance voting. In addition, Demeter revealed that Sonic is about to enter a "new phase," including a US expansion plan approved by governance, as well as the introduction of certain Ethereum Improvement Proposals (EIP) and proprietary Sonic Improvement Proposals (SIP) to enhance developer usability and interoperability.