- Sonic blockchain’s vertical integration strategy set to boost S token value.
- Sonic’s bold move aims to reshape token utility and liquidity.
- New approach strengthens ecosystem, positioning S token for long-term growth.
Sonic, the Layer 1 blockchain formerly known as Fantom, is taking bold steps to skyrocket the demand for its native S token. In a strategic shift, Sonic Labs is unveiling plans to build and acquire products designed to drastically enhance the token’s utility, solidifying its position in the competitive blockchain space.
According to a recent post from Sonic Labs, the blockchain will transition from its traditional “Gas Fee Only” model to a new, vertically integrated ecosystem. This fresh approach aims to boost the utility and liquidity of the S token by internalizing and monetizing the most critical economic activities within its ecosystem. Sonic Labs’ vision now includes controlling its key infrastructure, ranging from trading and payments to settlements and risk markets.
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With advancements in scaling technologies and increased competition from rollups and alternative Layer 1 blockchains, Sonic is recognizing that the old reliance on gas fees is no longer sustainable.
The team acknowledged that blockspace is no longer scarce, resulting in fee compression and greater user mobility between ecosystems. Thus, Sonic Labs aims to create a more robust and sustainable model that adds value to the S token through integrated infrastructure and innovative products.
A Revolutionary Ecosystem for Token Utility
Sonic’s vertical integration strategy aims to eliminate “value leakage” to blockchain-based apps by owning and controlling key applications. This will ensure that all revenue generated within the ecosystem directly benefits the S token, boosting its demand and utility.
Additionally, Sonic’s monetization system, FeeM, introduced last fall, will complement the new strategy by allowing app builders to capture a large share of the fees generated by their apps, while burning the remainder. This system, the team explained, will be reinforced under the new approach, driving even more value to the S token.
One of the core aspects of Sonic’s plan is its focus on building or acquiring high-quality application teams to enhance its ecosystem. The popular Hyperliquid perps DEX, for instance, will play a pivotal role in this strategy. Hyperliquid is seen as a model for Sonic’s integrated approach, where every transaction, liquidation, and fee directly strengthens the HYPE token, making the app and infrastructure inseparable.
Sonic’s push for vertical integration is designed to provide long-term value and stability for the S token. By controlling essential infrastructure and directing all revenue streams to strengthen the token, Sonic Labs is looking to create a sustainable growth cycle. With this new strategy, Sonic hopes to transform the way Layer 1 blockchains approach token utility, positioning the S token for long-term success.
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