Today, with the rapid development of blockchain technology, FTM tokens, as the native tokens of the Fantom network, have already occupied a place in the cryptocurrency market. However, with the upcoming launch of Sonic Chain, FTM tokens will usher in new changes and opportunities.
The rise of Sonic chain
Sonic Chain is a layer-one platform designed to provide a secure channel for Ethereum. It is designed to be the fastest settlement layer for digital assets, supporting over 10,000 TPS (transactions per second) with transaction confirmation times of just one second. This feature gives Sonic Chain a significant advantage when dealing with high-frequency transactions. In addition, Sonic Chain will launch a massive incentive program to support the development of its ecosystem.
Multiple roles of S tokens: In the Sonic chain, S tokens will serve as native tokens and assume multiple roles:
Pay transaction fees: When users conduct transactions on the Sonic chain, they need to use S tokens to pay corresponding fees.
Participate in pledge: Users can participate in the security of the chain by pledging S tokens. The minimum pledge amount is 1 S token.
Running a verification node: If you want to become a validator, the minimum requirement is to pledge 50,000 S tokens.
Participate in governance: Users holding S tokens will have the right to participate in the governance of Sonic chain.
Exchange of FTM and S tokens
With the launch of Sonic Chain, FTM holders will be able to exchange FTM tokens for S tokens at a 1:1 ratio. This policy not only provides convenience to existing FTM holders, but also lays the foundation for the initial development of Sonic chain. Additionally, users can purchase S tokens directly through decentralized exchanges (DEX) or major centralized exchanges (CEX).
Validator reward mechanism: In order to ensure the security of the Sonic network, validators need to provide computing resources and pledge a certain number of S tokens. In return, validators receive block rewards and user-paid transaction fees. According to the design of the network, the target reward rate is 3.5%. When 50% of the network tokens are staked, validators and stakers will receive corresponding benefits.
Block Rewards: The network mints tokens each cycle to distribute to validators, ensuring a stable reward rate.
Network Fees: The fees paid by users when conducting transactions on the network will be distributed to all staked S token holders in a certain proportion.
Tokenomics
The total supply of S tokens is 3,175,000,000, and the initial supply corresponds to the total supply of FTM tokens. Users can convert FTM to S tokens at a 1:1 ratio through Sonic Chain’s gateway.
Airdrops and Ongoing Funding: To encourage widespread adoption of S tokens, Sonic Chain will conduct an airdrop six months after launch, and 6% of the additional S tokens will be used exclusively to reward Opera and Sonic users and developers. Additionally, Sonic Chain plans to mint additional S tokens within six months of launch to:
Increase S Token’s global reach: Expand team size and drive higher adoption
Implement a strong marketing campaign and DeFi bootstrapping plan
Launch Sonic Spark and Sonic University projects to promote the future development and development of Sonic technology
Conclusion
With the launch of Sonic Chain, FTM tokens will usher in new opportunities and challenges. The multiple roles of S tokens and their applications in the network will provide users with more participation methods and profit opportunities. Through active incentive mechanisms and continued financial support, Sonic Chain is expected to occupy an important position in the blockchain ecosystem.
In the days to come, FTM holders can not only enjoy the convenience and benefits brought by S tokens, but also participate in the governance and development of Sonic chain. With the continuous advancement of technology and the continuous improvement of the ecosystem, Sonic Chain will definitely bring new changes to the transaction and management of digital assets.