The Sonic SVM chain on Solana launches significant tokenomics changes through a new burning system which will focus on boosting market demand and liquidity. The new system announced on May 19, 2025 establishes that half of all transaction fees shall be spent to buy SONIC tokens from the open market. This new approach moves away from the previous system which involved token burning to decrease supply without creating buying pressure. Experts anticipate that the new approach will strengthen the price support for SONIC.
Strategic Tokenomics for Ecosystem Growth
The updated model represents a strategic shift in managing token value according to Sonic SVM Chain CEO Chris Zhu. Our new strategy focuses on creating demand and building protocol-owned liquidity instead of just burning tokens as before. The revised approach provides advantages for both the platform’s app and gaming environments along with its token owner group. The protocol invests fee revenue into purchasing active tokens thus expanding liquidity in tandem with increased platform activity which benefits users during network growth.
Fee Redistribution and Solana Staking Integration
The new burn mechanism leads to a modification in how Sonic SVM Chain handles its transaction fee redistribution. The platform will now directly stake its 12.5% fee share received as Solana (SOL) tokens on the Solana mainnet. SONIC token holders who supply liquidity to Sonic’s pools will receive rewards from staking returns. Through this design both liquidity providers and long-term token supporters gain from continuous network activity and expansion.
Scaling Liquidity with Network Usage
According to Sonic SVM Chain‘s leadership team the tokenomics upgrade is essential for scaling the platform’s infrastructure and ensuring economic sustainability. Alan Zhu, the Co-founder and Chief Product Officer, confirmed that the model facilitates sustainable growth. He stated that the value accrual mechanism enables our token economy to expand alongside network usage as we scale our infrastructure for millions of users. SONIC experiences increased buy pressure with each transaction which reinforces liquidity and enables ecosystem growth into gaming and social applications.
