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Sonic SVM, a blockchain built on the Solana Virtual Machine (SVM), is rolling out a significant update to its tokenomics aimed at enhancing liquidity and increasing buying pressure on its native token, SONIC.

In a press release shared on May 19, Sonic SVM announced a revamped token burn model. Under the new system, 50% of all transaction fees will be used to purchase SONIC tokens directly from the open market—a move designed to create sustained demand for the token.

Often mistaken for the project formerly known as Fantom, Sonic SVM operates as a Solana-based Layer 2 solution focused on monetizing user attention within apps. Previously, tokens collected from fees were sent to a burn address to reduce supply and indirectly support the token’s value. With this new mechanism, the project shifts toward a more proactive strategy.

“This redesigned mechanism represents a fundamental shift in how we think about long-term token value,” said Chris Zhu, CEO of Sonic SVM. “Rather than simply reducing supply through burning, we’re generating real demand and building protocol-owned liquidity. This not only strengthens our ecosystem of games and applications but also rewards our loyal community of token holders.”



Staking and Liquidity Incentives

Beyond the burn model, Sonic SVM is also updating how it handles network fees. A portion of fees—specifically, the 12.5% collected in Solana (SOL) tokens—will now be staked on the Solana mainnet. The resulting staking rewards will be distributed to users who hold vested SONIC tokens and contribute to liquidity pools on the Sonic SVM chain.

Alan Zhu, co-founder and Chief Product Officer at Sonic, emphasized the scalability and sustainability of the new approach:
“As we expand our infrastructure to support millions of users across gaming and social platforms, this value accrual model ensures our token economy scales alongside network growth. The more the network is used, the greater the buy pressure and the deeper the liquidity becomes.”

With these updates, Sonic SVM aims to reinforce its economic foundation, aligning incentives for users, liquidity providers, and token holders as it continues to grow its presence within the Solana ecosystem.