Sonic Labs Refines ETF Token Strategy to Protect Holders & Long-Term Vision
Sonic Labs has announced an important update to its ETF token allocation strategy, signaling a more disciplined and market-aware approach focused on long-term sustainability and holder protection.
Previously, the Sonic community approved a governance proposal allowing up to $50 million worth of
$S tokens to be allocated toward a potential U.S.-listed ETF, aiming to provide compliant institutional access through regulated financial products.
However, following the proposal’s approval, broader market weakness and a decline in the
$S token price significantly changed execution dynamics. Under those conditions, moving forward would have required minting over 600 million new tokens, far exceeding the original intent and potentially creating unnecessary supply pressure. Rather than executing mechanically, Sonic Labs chose to pause.
To better align with holder interests, Sonic Labs has now introduced clear execution constraints:
ETF minting will only occur if
$S trades above $0.50
A hard cap of 100 million tokens will apply
The total allocation remains capped at $50 million
Preference is given to issuing fewer tokens at higher prices, avoiding dilution during weak market phases
If these conditions are not met, no execution will take place.
Additionally, Sonic Labs confirmed that any S tokens allocated for ETF use will remain locked within regulated products and will not enter secondary markets, removing concerns around added sell pressure.
The team reaffirmed that a U.S.-listed ETF remains a long-term strategic objective, with future progress guided by transparent governance, disciplined execution, and clear communication.
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