Community members of Sonic, the rebranded Fantom blockchain, approved a large bet on institutional adoption with a vote to fund a U.S. expansion strategy that includes the creation of a $50 million ETF initiative, a $100 million investment program and the creation of a Delaware-registered company.
The vote found support from 99.99% of participants. The community rejected the alternative “no-change” option almost unanimously, with just 51,200 votes against the plan and 860.6 million in favor.
Sonic Labs pitched the proposal as a necessary break from its “2018 tokenomics,” which involved Fantom Foundation giving away most of its supply to the community. That structure left the foundation holding just 3% of tokens at launch, compared with 50%–90% held by peers.
While community-friendly, the team argued it hobbled its ability to fund listings on crypto exchanges, acquisitions and partnerships. The new issuance is designed to close that gap and make Sonic competitive in a market where blockchains increasingly act like companies.
In addition to the ETF initiative, the vote authorizes private investment in a public equity (PIPE) vehicle on Nasdaq, and the seeding of 150 million S tokens for Sonic USA, which will be based in New York City. S were created as part of last year’s rebranding.
The ETF plan will involve a regulated provider with over $10 billion in assets under management, with custody handled by BitGo. The PIPE vehicle aims to seed a Nasdaq-listed entity’s balance sheet with S tokens locked for at least three years in exchange for strategic treasury purchases.
At the network level, fees will also be redirected under a revised mechanism to burn more tokens and reduce inflation — a nod to token holder demands for deflationary pressure.
Whether these moves translate into real adoption remains to be seen, but Sonic now has both the mandate and the war chest to compete directly in the ETF and traditional finance arena.