What is Sonic Blockchain and How Does it Work? Full Guide

What Is the Sonic Blockchain?

Sonic is a relatively new Layer-1 blockchain created by Sonic Labs, formerly known as Fantom. The network was co-founded and architected by Andre Cronje, a well-known figure in the blockchain industry who previously contributed to numerous DeFi protocols like Yearn and Keep3r. Under his technical leadership, Sonic focuses on two main things: very fast speeds and helping developers earn money from their work. Sonic works with Ethereum-based apps and can handle up to 10,000 transactions every second. It confirms these transactions in less than one second, which makes it a powerful platform for moving digital assets quickly.

The team behind Sonic designed it to solve common problems that slow down other blockchains. Many networks struggle with either speed, security, or letting developers make money. Sonic tries to fix all three issues at once.

Key Features That Make Sonic Different

Transaction Speed and Confirmation Time

Sonic’s Proof-of-Stake consensus mechanism processes transactions much faster than many competing blockchains. It can handle 10,000 transactions per second, many times faster than networks like Ethereum or Bitcoin. When you send tokens or use an app on Sonic, your transaction completes in less than one second.

This speed makes Sonic useful for:

• Trading digital assets when prices change quickly
• Running games that need fast responses
• Processing payments without waiting
• Supporting apps with many users at once

Ethereum Compatibility Through Gateway Bridge

Sonic connects to Ethereum through its native Gateway bridge. This means that users can move their tokens between Sonic and Ethereum without complicated steps. Developers who built apps for Ethereum can bring them to Sonic without rewriting their code.

The Gateway bridge lets people use Ethereum's security while enjoying Sonic's speed. This matters because Ethereum has the most users and developers in blockchain, but Sonic offers better performance for everyday use.

Fee Monetization for Developers

Perhaps the most unusual feature of Sonic is how it handles transaction fees. On most blockchains, when users pay fees, the money goes to validators or the network itself. Sonic does something different with its Fee Monetization system (FeeM).

When users pay fees while using an app on Sonic, up to 90% of those fees go back to the developers who built the app. This creates a new way for builders to earn money without constantly asking for investments or charging users extra fees.

This means that if half of all network transactions come from apps using FeeM and the average transaction costs are $0.01, and with 10 million daily transactions, the revenue would be about:

• $36.5 million in yearly revenue
• $9.125 million burned yearly (reducing supply)
• $10.0375 million paid to validators yearly
• $16.425 million distributed to Sonic developers yearly

This approach could transform how blockchain apps make money. Instead of focusing only on token sales or advertising, developers can earn from regular usage of their products. Even at just a fraction of the network's technical capacity, this creates a sustainable economic model for the Layer-1 blockchain.

S Token: Supply and Distribution

The Sonic network uses a token called "S" for various functions. Understanding how these tokens are distributed helps explain how the network will grow over time.

Total and Circulating Supply

The total number of S tokens is 3.175 billion. When the network launched, about 2.88 billion tokens were already in circulation. Many of these were from FTM token holders who swapped their tokens for S tokens at a 1:1 ratio. Unlike many cryptocurrencies, S does not have a fixed maximum supply cap.

The approach helped Sonic start with an active community with many holders instead of building from zero. People who supported Fantom could move to the new network with equivalent value.

User Airdrop Details

About 6% of the initial supply (approximately 190.5 million S tokens) will be given to users who were active on the Opera and Sonic networks. These tokens will be distributed six months after the network launch. Recipients won't get all their tokens at once - instead, the tokens will unlock gradually over nine months.

This gradual release helps prevent people from selling all their tokens immediately, which could cause price instability.

Growth Funding Mechanism

Starting in June 2025, Sonic will create new tokens to fund network growth. Each year for ten years, the network will issue 1.5% of the total supply (about 47.6 million S tokens annually). These tokens will support development, marketing, and other activities that help the network expand.

Importantly, if the network doesn't use all these new tokens, it will destroy the extras. This "burning" mechanism helps control the total supply and prevents unnecessary inflation.

Validator Rewards Structure

During the first four years of operation, Sonic will distribute approximately 70,067,224 tokens annually as rewards to validators. These rewards come from the existing token supply, not from newly minted tokens. This approach allows Sonic to avoid creating new S tokens for block rewards during this initial four year period.

From the fourth year onward, Sonic will start creating additional tokens to reward validators. These rewards will add 1.75% to the token supply each year, with a maximum of 70 million new S tokens annually.

This phased approach gives the network time to establish itself before increasing the token supply.

Supporting Developers Beyond Fee Sharing

While the Fee Monetization system provides immediate income to developers, Sonic also offers another incentive program called Sonic Gems.

The Sonic Gems Program

The Sonic Gems Program rewards applications based on how many people use them and how often. Developers receive S tokens when their apps show strong engagement metrics. This approach helps new projects grow without constantly raising money from investors.

For users, this means they might see more free apps and fewer subscription fees. For developers, it means they can focus on building useful products rather than monetization strategies.

Conclusion

Sonic represents a technical evolution in blockchain design with its 10,000 TPS performance and sub-second finality. By combining high transaction speeds, Ethereum compatibility, and strong economic incentives, Sonic aims to accelerate mainstream adoption of Web3 technologies.

Its most distinctive feature remains the Fee Monetization system, which redirects transaction fees to developers rather than validators. This focus on developer earnings could attract talent from traditional tech companies, as programmers can earn directly from their work without middlemen taking most profits. Combined with the Sonic Gems program and careful tokenomics planning, the platform creates a comprehensive economic system for sustainable blockchain application development.

The success of this approach depends on adoption from both developers and users. For developers, the economic incentives provide a clear path to sustainability. For users, the benefits include faster transactions, lower costs, and better applications. The sub-second finality means users receive immediate confirmation of their transactions, creating a smoother experience compared to networks with longer wait times.

With its Ethereum and EVM compatibility and performance advantages, Sonic has positioned itself to compete effectively in the increasingly crowded Layer-1 blockchain market, offering benefits for all ecosystem participants.