Sonic Labs’ native token S gained 17.7% after the company decided not to implement its annual token inflation plan this year.
Sonic announced that under the current token economy, it is anticipated that 47,625,000 S tokens will be issued annually to fund network growth. The first allocation was made on June 18, 2025 and it was clarified that no strikes took place this year.
The project team indicated that work is underway to completely eliminate inflation from the supply of S. However, they added that the most important issue to be resolved in this process concerns validator rewards. Sonic Labs said they are working on how to fund validators in order to maintain network security.
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The Sonic ecosystem is also closely associated with Andre Cronje, a leading figure in the DeFi world. Cronje has gained significant community support through the DeFi projects he developed in the past and has been nicknamed the “father of DeFi.” Cronje, who played an important role in the rise of Fantom, caused sharp fluctuations in the price of FTM when he left the project and then returned.
After Fantom rebranded as Sonic, the S token suffered significant losses in value and Cronje’s departure from Sonic further strained investor confidence.
*This does not constitute investment advice.