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

According to Odaily Planet Daily, Sonic Labs CEO Mitchell Demeter announced that the company will launch a new Fee Monetization (FeeM) system to implement a deflationary model for its native token S.

The 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 are paid in S tokens. Demeter stated that this move aims to incentivize developers and validators while strengthening long-term value through token burning.

He pointed out, "Our goal is to increase deflationary strength and strengthen long-term value synergy." The system will be formally implemented through on-chain governance voting.

In addition, Demeter also 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)