What is Fantom Sonic? Tokenomics & More

What is the Fantom Sonic Upgrade?

The Fantom Sonic upgrade is an overhaul aimed at improving the scalability of the Fantom blockchain. It introduces a new Fantom Virtual Machine (FVM), which enhances transaction speed and execution efficiency by replacing the existing Ethereum Virtual Machine (EVM).

The FVM optimizes bytecode execution with super instructions, allowing for faster processing and improved caching mechanisms, such as cryptographic hashing and JUMPDEST analysis. 

As a result, Sonic is expected to handle over 2,000 transactions per second (TPS) with sub-second finality, significantly boosting throughput without adding additional layers or sharding.

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How Fantom Sonic Works

Sonic is Fantom’s next-generation blockchain, replacing its predecessor, Opera, by introducing advanced tech that speeds up transactions and cuts down on storage needs. It has implemented a new FVM, optimized database storage with Carmen, and refined consensus mechanisms. 

Here’s how Sonic improves on Opera:

• Fantom Virtual Machine (FVM): The FVM replaces the older EVM in Opera, boosting smart contract execution with parallelized processing and caching.
• Carmen Database: Unlike Opera’s storage-heavy design, Carmen reduces storage by up to 90% through live pruning and a flat storage structure.
• LiveDB and ArchiveDB: Separates current data from historical records, improving the speed of access and synchronization versus Opera’s slower, monolithic design.
• Lachesis Consensus: Builds on Opera's consensus model but significantly improves transaction throughput and finality with enhanced peer-to-peer networking.
• Validator Syncing: While Opera took weeks to sync a validator, Sonic cuts this down to just days by streamlining block processing.

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Sonic Release Date

The Fantom Sonic mainnet is scheduled for release in Q4 2024. The testnet is currently live, allowing users and developers to explore its features and performance ahead of the full launch.

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Fantom Sonic Tokenomics (S)

The transition from Fantom’s FTM token to Sonic’s S token brings some important changes to the network's tokenomics. The swap will happen on a 1:1 basis, meaning every FTM holder will get an equal amount of S tokens. The S token will be the main currency for transaction fees, staking, validator rewards, and governance on the new Sonic network.

Key points about Sonic’s tokenomics:

• Supply: The total supply of S tokens will match FTM’s current supply of 3.175 billion tokens.
• Airdrops & Incentives: 6% of the S token supply is set aside for airdrops and incentives to encourage early adoption and liquidity.
• Burn Mechanism: Any unused S tokens from specific initiatives will be burned to control inflation and maintain token value.
• Validator Rewards: Validator and staking rewards will move over to Sonic, with target APRs designed to keep the ecosystem balanced without inflation.

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Sonic Airdrop

The Sonic airdrop, proposed in mid-2024, will distribute 6% of the S token supply to reward Fantom Opera users and attract new participants to the Sonic network. 

It’s set to roll out six months after Sonic’s launch, with users getting tokens as ERC-1155 NFTs (fNFTs). You’ll get 25% of your tokens upfront, while the remaining 75% will vest over time. The airdrop also has a burn mechanism, if you claim early, you’ll lose a portion of your tokens, which helps control inflation.

To qualify, users can provide liquidity, stake or validate on Sonic, hold liquid staked tokens (LSTs), or bridge funds. Developers deploying high gas contracts and active protocol participants will also be eligible for rewards.

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Bottom Line

Fantom’s Sonic upgrade is shaping up to be the boost the network has been waiting for. After some highs and lows, Fantom looks set to bounce back with faster transactions, reduced storage needs, and a more efficient system.

With Sonic launching in Q4 2024, the new tech and tokenomics, plus airdrop incentives, are designed to bring developers and users back.