Fantom allocates $120M FTM tokens for Sonic migration

The Fantom Foundation, the organization behind the Fantom decentralized network, has announced a financial commitment to support the launch of Sonic, a new, faster network. 

On June 20, the Fantom Foundation announced that they are putting aside up to 200 million of its native Fantom tokens ( FTM ), worth about $120 million, from its treasury to help developers and companies move their projects to Sonic.

About the funds

The pledged funds will be used to find and secure top-notch partners who can help build and grow the Sonic network. These partners include developers creating apps directly on Fantom, developers making decentralized apps (DApps), and partners providing crucial tools and services.

However, the money comes from smart financial strategies led by Fantom network creator Andre Cronje without increasing the total number of tokens.

The initial focus for these allocations will be to provide strategic grants to applications already within the Fantom ecosystem, with priority given to those who have demonstrated a strong interest in utilizing the Sonic technology.

Sonic foundation

This development follows the creation of a new foundation for facilitating the launch of their upcoming Sonic chain. Fantom’s Sonic Foundation will oversee Sonic’s governance, manage the network treasury, orchestrate partnerships, and develop the DApp ecosystem.

According to Fantom Foundation CEO Michael Kong and the Fantom development team, Sonic will have a new layer-1 solution and a built-in layer 2 that directly bridges the EVM-compatible network to the Ethereum network.

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Through the Sonic Chain’s architecture, users of the upcoming Sonic network will reportedly be able to tap into Ethereum’s vast ecosystem of decentralized applications, liquidity providers, and community.

Fantom incentives history

This isn’t the first time Fantom Foundation has provided incentives for a cause. In May, layer-1 blockchain Fantom pushed the idea of “safer memecoins” by setting aside $6.5 million worth of its native FTM token to reward developers.

Also, in May 2023, a new Fantom Opera network team program called the “ Gas Monetization Program ” was launched to pay developers the gas fees they generate from users. Specifically, the Program pays eligible developers 15% of the total gas fees their apps generate.

Cointelegraph has contacted the Fantom network team for more information on the Sonic Labs fund but has yet to receive feedback before publication.

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