Sonic Labs launches fee monetization system, pushing native tokens into a deflationary mechanism.

Sonic Labs CEO Mitchell Demeter announced the launch of a new Fee Monetization (FeeM) system to implement a deflationary model for its native token, S. This system establishes a tiered reward mechanism for ecosystem builders, with reward percentages ranging from 15% to 90% based on network usage. Validators will receive a fixed 10% share of transaction fees, with the remainder being burned. Sonic on-chain transaction fees will be paid in S tokens. Demeter stated that this move aims to incentivize developers and validators while strengthening long-term value through token burning. He noted, "Our goal is to increase deflationary strength and strengthen long-term value synergy." The system will be formally implemented through on-chain governance voting. Furthermore, Demeter disclosed that Sonic is about to enter a "new phase," including a governance-approved US expansion plan and the introduction of some Ethereum Improvement Proposals (EIPs) and its own Sonic Improvement Proposals (SIPs) to enhance developer usability and interoperability. (The Block)