Sonic Labs Launches Plan for US ETP and Institutional Access

Sonic Labs has outlined a new proposal aimed at significantly increasing its institutional reach and market presence. The proposal, which seeks community input, involves issuing a substantial number of coins to facilitate a series of strategic initiatives. Besides penetrating U.S. markets through Sonic USA LLC, a fund allocation for an ETP/ETF will be considered, and the structuring of a NASDAQ PIPE will be undertaken.

The company is currently striving to lessen the gap in token supply with competitors, in turn positioning itself to be able to explore growth opportunities within both the traditional world and dForce.

SA LLC and U.S. Market Expansion

One major initiative would be to set up Sonic USA LLC. This new set-up will be responsible for the expansion into the United States. A new CEO will be hired along with other leaders, including a CMO and a Director for Capital Markets, to lead this expansion. The expansion includes setting up offices in New York City for the purposes of business development and ecosystem initiatives.

The goal is to increase binding upon U.S. economic policies, establish regulatory dependence as a demonstration, and push the usage of USDC within DeFi ecosystem.  By leveraging U.S.-based partnerships and emphasizing the company's potential, the proposal aims to solidify its position within the competitive landscape.

Issuance of Tokens for Institutional Vehicles

In addition to its U.S. expansion, Sonic Labs proposes issuing tokens to fund two major institutional initiatives: a $50M ETF allocation and a $100M NASDAQ PIPE development. The goal of the ETF initiative is to partner with a top-tier ETF provider with assets under management (AUM) greater than $10 billion. The tokens are intended to provide seed liquidity and support fund operations, thereby creating exposure for the ecosystem in the U.S. institutional market.

Likewise, the NASDAQ PIPE initiative is supposed to build a strategic reserve that would improve the balance sheet of a NASDAQ-listed vehicle. This reserve will then help acquire Sonic's tokens on the open market, with the tokens locked for a minimum of three years to match the timeline of corporate growth.

Alterations to Tokenomics and Fee Mechanisms

One vector of the Proposal is an amendment to the firm's tokenomics. This amendment would change gas fee distributions to exert a stronger deflationary effect. FeeM transactions will distribute the fees as: 90% to builders, 5% to validators, and 5% for burning. Non-FeeM transactions will send 50% to validators and burn 50%.

This mechanism serves to reduce inflationary pressure on the token supply and nurture the retention of value for the longer term. It further seeks approval for issuance of S tokens up to 150 million times, including the mentioned ETF of $50M and PIPE of $100M allocations and those allocated for USA development.

Moreover, the company seeks community feedback on the proposals to modernize its tokenomics and enhance its competitive ability in a fast-changing market. Large competitors still hold a considerable reserve of tokens, offering them a chance to catch up and ensure it can compete for large opportunities in the institutional space. The token issuance should provide Sonic the liquidity and flexibility required to quickly engage in high-profile partnerships and accelerate growth domestically and internationally.