Understanding Sonic SVM in one article: TGE, token economics and roadmap

Author: AJC, Messari Research Manager; Translation: Jinse Finance xiaozou

1. Summary of Key Points

• SONIC token completed TGE (Token Generation Event). SONIC’s fully diluted valuation (FDV) is $2.14 billion, making it the ninth most valuable L2 token in FDV and the first active L2 token based on Solana.

• Sonic SVM’s first TikTok game, SonicX, is a blockchain-based tap-to-earn game. It requires registering a TikTok account and has attracted more than 2 million users to register.

• SONICThe total supply of tokens is2.4, which are strategically allocated to support ecosystem growth, validator rewards, and community participation.The initial TGE token circulation is 15%, and 57% of the total supply is allocated to the community.

• Sonic SVMdepicts a clear three-phase roadmap,with milestones including the HyperGrid shared state network in the first phase, the mainnet Alpha release in the second phase (key services such as bridges and oracles), and the ecosystem expansion in the third phase (additional SVMs and enhanced staking mechanisms).

2. Introduction to Sonic SVM

Sonic SVM (Sonic) is an atomic Layer-2 (L2) scaling solution on Solana, designed to improve the efficiency and interoperability of blockchain gaming platforms by providing dedicated block space and optimized tools for developers and players. Sonic SVM was first announced in March 2024. It uses the innovative HyperGrid scaling mechanism to seamlessly integrate with Solana and provide high-performance games and efficient transaction rollups. Key features include atomic interoperability, the HyperGrid framework for optimistic rollup deployment on Solana, and the Rush ECS framework that simplifies on-chain games and autonomous world construction. Sonic provides monetization tools for games and applications for payment, settlement, and customer acquisition. One of these applications is SonicX, a blockchain "tap-to-earn" gaming platform based on Solana Sonic SVM. It is integrated with TikTok, allowing users to log in to play games and earn rewards using their TikTok accounts. The platform reportedly has more than 2 million users.

Sonic SVM was created by Mirror World Labs, and the founding team consists of CEO Chris Zhu, COO Alan Zhu and CTO Jonathan Bakebwa. In June 2024, the project announced the completion of a $12 million Series A financing, following a $4 million seed round. Investors include BITKRAFT, Galaxy Interactive, Big Brain Holdings, Sky9 Capital, OKX Ventures, etc.

3.SONICToken Economics

On December 31, 2024, the SONIC token was launched as the main utility token of the SONIC SVM. It is designed to support applications in the Sonic SVM ecosystem and other SVMs that utilize the HyperGrid framework. The total supply of SONIC tokens is set at 2.4 billion, and its allocation is specifically used to support the development of the ecosystem and encourage continued participation.

（1）Allocation

• Ecosystem and Community (30%): 720 million tokens were allocated for measures to promote ecosystem development and community participation. These tokens will be distributed gradually to promote long-term participation and innovation in the Sonic SVM ecosystem. In addition, funding for game studios and dApp developers who develop and build within the ecosystem is also included.

• Sonic HyperGridRewards (20%):480 million tokens are allocated to incentivize validator participation. Half of these are allocated to validators who secure the Sonic SVM network, and the rest are allocated to watch nodes that monitor the network.

• Foundation (20%):480 million tokens are retained by the Foundation to support the project's continued development, partnerships, and strategic growth initiatives. Of course, team members and advisors are also included.

• Investors (15%):360 million tokens were distributed to investors as part of the funding round to thank them for their financial support of the project.

• Early Backers (8%):192 million tokens were allocated to contributors and supporters who shined during the early stages of the project's development.

• Initial Claim (7%): 168 million tokens were allocated to an early distribution to stakeholders and contributors to ensure initial liquidity and participation. This includes Sonic AVS delegators, HyperFuse Node holders, Odyssey participants, SonicX users, World Store points holders, and Mirror NFT holders.

The circulating supply of TGE is 15% of the total token supply, coming from the "Initial Claim" and "Ecosystem" allocations. Both the “Investors” and “Early Supporters” allocations have a 12 month cliff period followed by a 24 month linear vesting period. The other allocation subject to a vesting period is the “Funds” allocation, which has an 18 month cliff period followed by a 36 month linear vesting period. As for the “Ecosystem” and “HyperGrid Rewards” allocations, there are no defined vesting periods, but as of the time of writing, neither category has fully vested.

(2) Utility

SONIC tokens have several core functions that provide utility to token holders:

• Medium of Exchange

SONIC is the primary transaction currency of the SONIC SVM ecosystem, supporting payments for in-game assets, services, and other applications. This ensures seamless economic activity across the platform.

• Staking

Token holders can stake SONIC to contribute to the ecosystem. By staking, users gain the right to participate in upcoming events and earn rewards. As of the time of writing, approximately 21.1 million SONIC is staked, with a maximum APR of 21.27%. Additionally, users will be able to stake Sonic Support Network validation once the Sonic SVM network goes live. Stakers will be able to allocate their tokens to validators to earn returns.

• Staking Rewards

Stakers will be rewarded with SONIC for their participation in securing the network, incentivizing long-term token holdings, and active participation in the ecosystem.

• Governance

SONIC holders have the ability to participate in governance decisions, enabling them to vote on protocol upgrades, allocation changes, and other key proposals.

4. Token Generation Event (TGE)

SONIC tokens were released on January 7, 2025. Previously, on January 3, users could check whether they were eligible for the initial claim allocation. Eligible users include Sonic AVS delegators, node holders, Odyssey participants, SonicX users, World Store points holders, and Mirror NFT holders. Eligible users have the following two options:

• Claim the entire airdrop immediately.

• Claim 60% and exercise the rest within 6 months (starting from 6 months after the TGE) to earn a 140% bonus.

In addition, on the same day, the SONIC Alpha Vault was announced. This collaborative initiative initiated by Sonic SVM, Live Bonk and Meteora ensures a fair pro-rata token distribution without front-running. The vault provides 4.5 million SONIC tokens through a pro-rata distribution model with no vesting requirements. The Alpha Vault opened on January 5th to eligible participants and ended with the TGE.

On the day of launch, SONIC’s liquidity was supported on both decentralized exchanges (Raydium and Meteora) and centralized exchanges (OKX, Bybit, KuCoin, Bitget, Upbit, Gate, Mexc, Backpack, Trubit, Hashkey, BingX, etc.). As of this writing, SONIC’s fully allocated value is $1.94 billion, making it the ninth-largest L2 token by FDV. In addition, SONIC is the only Solana-based L2 token in the top ten and the first to go live. In addition, there are 42,700 wallets holding SONIC as of this writing.

5. Roadmap

Sonic SVM’s roadmap outlines three progressive development phases, each moving towards the development and expansion of its ecosystem. The three-phase development roadmap highlights key milestones from initial network setup to the expansion of the entire ecosystem, highlighting the importance of technical development and community engagement.

• Phase 1: Network Generation (Q4 2024 - Q1 2025)

The focus of the network generation phase is to establish Sonic SVM’s infrastructure and initiate key partnerships. During this phase, the HyperGrid shared state network will be launched, supporting the creation of interconnected SVM networks to promote seamless interoperability. In addition, a decentralized node set, called HyperFuse, was deployed to ensure the security and integrity of HyperGrid operations. The result of this phase is the official birth of the Sonic SVM network.

• Phase 2: Mainnet Alpha Release (Q1 2025)

The Mainnet Alpha release marks the transition from testnet to mainnet. The Mainnet Alpha deployment launched major services including bridges, DEX, oracle, and NFT programs. During this phase, SonicX will also launch Android and iOS applications. Sonic Bridge will also support asset transfers for tokens such as SOL, sSOL, sonicSOL, and stablecoins such as USDC and USDT. In addition, all HSSN validators are activated to effectively protect network security and operate the network.

• Phase 3: Ecosystem Expansion (Q2 2025)

The final phase focuses on expanding the Sonic SVM platform to accommodate a wider range of developer and user needs. This phase includes the integration of the new Sonic Virtual Machine (SVM) through the HyperGrid Optimal Rollup Stack. Sonic Grid V2 will be released on the test network, followed by the mainnet deployment. In addition, the SONIC staking program has been launched, allowing SONIC holders to stake and delegate their tokens to HSSN validators to earn rewards, and a penalty mechanism to ensure network security. Finally, the RUSH ECS framework will expand and support new SDK clients to support more on-chain games and use cases.

Smart Agent Hub Developed in Partnership with Injective

One example of ecosystem expansion is Sonic SVM’s partnership with Injective. Sonic SVM and Injective have collaborated to develop a cross-chain smart agent hub that enables automated decentralized transactions across multiple blockchain networks. The hub leverages Sonic’s programmable asset transfer protocol and Injective’s infrastructure for interoperability. It will be launched as an SVM using the HyperGrid framework. This collaboration aims to simplify cross-chain operations and improve the efficiency of decentralized AI applications.

6. Conclusion

Sonic SVM is an innovative approach to blockchain scalability and interoperability, tailored for gaming applications on Solana. Through its innovative HyperGrid scaling mechanism and RUSH ECS framework, Sonic SVM provides developers and users with a high-performance L2 solution that addresses the industry’s most pressing challenges, including scalability, transaction costs, and user experience fragmentation.

SONIC tokens were launched as the ecosystem’s utility token, ensuring economic functionality and incentivizing participation, with staking, governance, and developer rewards playing key roles. A well-thought-out tokenomics structure, coupled with a well-executed TGE, is a great example of Sonic SVM’s strategic thinking to drive adoption and liquidity. With a TGE token circulation of 15% of the total supply and support from major decentralized and centralized exchanges, Sonic SVM has positioned itself as the first Solana-based L2 in the FDV top 10.

Sonic SVM’s three-phase roadmap depicts clear milestones, from base network generation to ecosystem expansion and cross-chain integration. Strategic collaborations, such as its partnership with Injective to develop the Smart Agent Hub, further demonstrate its commitment to innovation. Sonic SVM is ready to play a leading role in shaping the future of blockchain gaming and decentralized applications.