Fantom Foundation Commits $120 Million to Boost Sonic Network Project Migrations

Fantom Foundation Commits $120 Million to Boost Sonic Network Project Migrations

The Fantom Foundation, the entity behind the Fantom decentralized network, has announced a significant financial commitment to support the launch and development of Sonic, a new and faster network. On June 20, the foundation revealed plans to allocate up to 200 million of its native Fantom tokens, valued at approximately $120 million, from its treasury to facilitate project transitions to the Sonic network.

Strategic Allocation to Foster Development

The pledged funds will be utilized to identify and secure partnerships with top-tier developers and companies that can contribute to the growth and success of the Sonic network. This includes developers working directly on the Fantom platform, those focused on decentralized applications (DApps), and partners providing essential tools and services. Notably, these funds will come from smart financial strategies implemented by Andre Cronje, the creator of the Fantom network, without increasing the total token supply.

Introducing Sonic: A New Layer-1 Solution

The initial allocation of funds will be directed towards strategic grants for existing applications within the Fantom ecosystem, prioritizing projects that have shown a strong interest in leveraging Sonic technology. The Sonic Foundation, a newly established entity, will oversee Sonic’s governance, manage the network treasury, foster partnerships, and nurture the DApp ecosystem.

According to Fantom Foundation CEO Michael Kong, Sonic will introduce a new layer-1 solution alongside a built-in layer 2 that enables seamless integration with the Ethereum network. This architecture will bridge the gap between the two EVM-compatible networks, allowing users on the Sonic network to access Ethereum’s extensive ecosystem of decentralized applications, liquidity providers, and community.

Ongoing Incentives and Initiatives

This commitment to support project migrations to Sonic follows previous incentive programs by the Fantom Foundation. In May, the Fantom network set aside $6.5 million worth of its native tokens to incentivize developers, focusing on the concept of “safer memecoins.” Additionally, in May 2023, the Fantom Opera network launched the “Gas Monetization Program,” which compensates eligible developers with 15% of the total gas fees generated by their applications.

Enhancing Decentralization

Earlier this year, the Fantom Network announced a significant reduction in validator requirements, lowering the assets needed to run a self-staking node from 500,000 FTM to 50,000 FTM. This move is aimed at making it more accessible to run a Fantom node, emphasizing decentralization and its positive impact on the overall network.

The foundation’s actions are positioning Fantom for the future of decentralized networks, countering criticisms that decentralized applications and blockchains often fail to live up to the ideals of decentralized finance (DeFi). By reducing the cost of staking and becoming a validator, Fantom aims to distribute control more equitably across the network, moving away from the dominance of centralized players.

Through these comprehensive initiatives and substantial financial commitments, the Fantom Foundation is set to significantly enhance the development and adoption of the Sonic network, fostering a more decentralized and robust ecosystem.

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