Sonic Labs launches a rate monetization system to drive native tokens into a deflationary mechanism

Sonic Labs CEO Mitchell Demeter announced that the company will launch a brand 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% based on network usage. Validators will receive a fixed 10% of the fee distribution, 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 strengthen long-term value through token burns while incentivizing developers and validators. He pointed out, "Our goal is to increase deflationary intensity and enhance long-term value synergy." The system will be officially implemented through on-chain governance voting. Additionally, Demeter revealed that Sonic is about to enter a "new phase," including a U.S. expansion plan approved by governance and the introduction of certain Ethereum Improvement Proposals (EIPs) along with proprietary Sonic Improvement Proposals (SIPs) to enhance developer usability and interoperability.