Sonic (S), the layer-1 blockchain formerly known as Fantom since late 2024, has officially announced its first season of $S token airdrop distribution.
Although the airdrop plan comes when the price of S has dropped more than 30% over the past month, investors believe the distribution method will help ease selling pressure in the future.
Sonic to Distribute Over 200 Million S Tokens
According to a post on X and official documents on the Sonic Labs website, Sonic will distribute 190,500,000 S tokens through multiple seasons. This strategy aims to ensure sustainability and minimize selling pressure after the release.
Users who have earned Sonic Points, Sonic Gems, or Game Gems are eligible for the airdrop. It will also reward historical activity on Opera, Participation in Sonic Arcade, and Minters of the exclusive Shard NFT
Specifically, 25% of the total allocated tokens will be immediately liquid. This means recipients can use or trade 25% of their $S tokens as soon as the airdrop occurs.
The remaining 75% will be vested over 270 days through a tradable NFT-based mechanism. Notably, users can choose to unlock these tokens early.
However, doing so will incur a token burn penalty. This mechanism encourages long-term holding and reduces market sell pressure.
Some investors view this distribution method as a smart solution to control price volatility after the airdrop.
“Glad to see SonicLabs found a smart way to handle post-airdrop selling pressure. In current market sentiments, a full unlock could’ve crushed the price,” one investor commented on X.
Sonic made this announcement as the price of S has fallen more than 30% since early May. The over 190 million S tokens set for distribution are currently valued at more than $76 million.
Since early May, Binance has announced support for the Sonic airdrop and actively listed projects within the Sonic ecosystem on Binance Alpha.
Whale sell-offs and the end of Sonic’s five-year partnership with market maker Wintermute have prolonged the downward price trend throughout the month.
Sonic (S) one-month price performance. Source: BeInCrypto
At the time of writing, Sonic’s total value locked (TVL) has surpassed $870 million, marking a 30-fold increase since the start of the year.
In addition, Artemis data shows that the number of daily active addresses on this layer-1 blockchain has grown significantly. It has risen from 16,000 per day at the beginning of the year to over 50,000 per day currently.
These figures indicate that despite the price drop, Sonic continues to attract a solid base of investors and developers. This ongoing interest helps Sonic maintain a positive outlook as the market awaits a potential altcoin season.
