- The Sonic community voted for a $150M fund to drive US market entry and ETF growth.
- Sonic USA LLC was formed in New York to back $50M ETF and $100M Nasdaq PIPE plans.
- In order to reduce supply and increase value for holders, token fees will be burned.
The Sonic community has approved a $150 million token issuance to fund an ambitious U.S. expansion strategy. With overwhelming support, 99.99% of participants voted in favor, while only 51,200 votes opposed. The initiative introduces a $50 million exchange-traded fund, a $100 million private investment program, and a Delaware-registered company, Sonic USA LLC, with a New York City base. This decision aims to reshape Sonic’s global footprint and position the blockchain directly in the path of institutional capital.
Community Mandate and Structural Shift
Sonic was initially designed as a community-first blockchain. At launch, it kept only 3% of the token supply, while rivals reserved up to 80%. This approach limited centralized control and promoted decentralized stewardship. Yet, growing institutional interest has driven Sonic toward a shift that introduces Wall Street mechanisms while retaining governance by token holders.
The proposal received near-unanimous approval, with more than 860.6 million votes cast in support. The near-rejection of the no-change option signaled the community’s strong appetite for expansion. This mandate authorizes Sonic to issue tokens to seed operations that follow institutional norms but keep voting power intact for its users.
ETF and Private Investment Vehicle
The $150 million package includes two financial instruments designed to bridge DeFi and Wall Street. The first is a $50 million exchange-traded fund, structured to attract institutional investors through regulated exposure to Sonic’s ecosystem. This plan involves partnering with a provider overseeing more than $10 billion in assets, ensuring credibility and professional management.
The second instrument is a $100 million private investment vehicle, tailored to prepare for a potential Nasdaq listing. This private investment in public equity, also called a PIPE, will involve locking 150 million S tokens for three years. In return, Sonic’s balance sheet will benefit from strategic treasury purchases, enhancing liquidity while demonstrating commitment to long-term partnerships.
Custody of these assets will be handled by BitGo, a regulated custodian widely used in institutional crypto finance. This integration adds a security layer demanded by institutional players. By adopting this approach, Sonic hopes to secure exchange listings and boost competitiveness against rivals already exploring regulated markets.
Tokenomics, Deflation, and Market Outlook
Beyond financial structures, the approved plan introduces significant changes to tokenomics. Network fees will be redirected under a revised model, with half burned to create deflationary pressure. This design benefits token holders by reducing supply while sustaining validator and builder incentives.
Related: Sonic Price Prediction 2025-35: Will It Hit $20 by 2030?
The introduction of a burn mechanism signals Sonic’s intent to respond to community calls for inflation control. By reducing token supply, Sonic seeks to balance growth with value preservation, a feature attractive to both retail and institutional investors.
Community approval has now equipped Sonic with capital and legitimacy to compete in the regulated finance arena. The plan raises an important question: can decentralized ethos coexist with Wall Street frameworks without diluting core blockchain principles?
Sonic’s vote not only created a mandate but also signaled that decentralized platforms may embrace institutional adoption while retaining community oversight. Whether this approach fosters adoption or reshapes DeFi remains uncertain, but Sonic now holds both resources and approval to attempt the transformation.
