Fantom Earmarks $120M FTM for Sonic Migration

The Fantom Foundation, the force behind the Fantom platform, has unveiled a substantial financial plan to boost the launch of a novel, high-speed network known as Sonic. On June 20, the organization revealed its pledge to allocate up to 200 million Fantom (FTM) tokens, approximately valued at $120 million, to facilitate the transition of developer projects to Sonic under the Sonic Labs Innovator Fund.

These funds are earmarked for identifying and securing collaborators who can contribute to the Sonic network’s development and expansion. This encompasses developers working directly on the Fantom platform, those creating decentralized applications (DApps), and partners offering essential tools and services. The announcement credits the accumulation of these FTM tokens to the strategic treasury management by Andre Cronje.

Initially, the funding will prioritize strategic grants for applications already situated within the Fantom ecosystem, with a preference for those showing a keen interest in adopting Sonic technology. The focus is on fostering a robust start for Sonic by leveraging existing actors within the Fantom community who are poised to integrate quickly and effectively.

This initiative accompanies the establishment of a new foundation designed to smooth the path for Sonic Chain’s inception. The newly formed Sonic Foundation will be responsible for overseeing Sonic’s governance, managing the network treasury, coordinating partnerships, and nurturing the DApp ecosystem. This organizational structure is aimed at providing a solid backbone for Sonic’s operations and strategic growth.

Fantom Foundation CEO Michael Kong, alongside the development team, has outlined that Sonic will introduce a new layer-1 solution along with an integrated layer-2 that bridges the Ethereum Virtual Machine-compatible network to Ethereum seamlessly. Through this architectural blueprint, Sonic users are expected to gain access to Ethereum’s extensive network of decentralized applications, liquidity sources, and community.

This move is not unprecedented for Fantom Foundation, known for its history of incentivizing project development. In May, the Foundation supported the concept of “safer memecoins” by allocating $6.5 million in FTM tokens to reward innovative developers. Further, in May 2023, it launched the “Gas Monetization Program” under the Fantom Opera network, aimed at compensating developers with a share of the gas fees their applications generate — specifically, 15% of the total generated gas fees.

Through these strategic initiatives and financial commitments, Fantom Foundation continues to assert its role in fostering innovation and development within the blockchain community. This forward-thinking approach aims to push the boundaries of what is possible with decentralized technologies and create fertile ground for emerging projects.

As the Sonic project progresses, the broader crypto community eagerly awaits further details and updates. Despite attempts to seek additional information from Fantom’s team regarding the Sonic Labs fund, no response has been received at this time.

In summation, Fantom Foundation’s latest financial commitment underscores its dedication to advancing blockchain technology and supporting developers. The Sonic initiative, fortified by substantial backing and strategic management, is poised to become a significant player in the decentralized network landscape.