The Sonic Labs project has approved a plan to enter the U.S. capital market. The company will allocate $195 million in native S tokens for this initiative.
The proposal was submitted to the DAO on August 20 and was supported by 99.99% of participants.
The plan includes the following initiatives:
- $50 million will be allocated to launch an ETF in partnership with a “top-tier” provider, with the exchange-traded fund tracking the price of S;
- $100 million will be invested in a PIPE deal on Nasdaq, creating a reserve for token buybacks on the open market and through over-the-counter transactions. S will be locked for at least three years;
- 150 million S will be allocated for the development of the American division, Sonic USA.
For the latter, Sonic Labs will hire local top managers. The team will focus on regulatory compliance and partnerships.
The company explained the initiative by citing growing institutional demand for S from the U.S.
Simultaneously, Sonic Labs will update the project’s tokenomics. The model will incorporate burning a portion of gas fees to make the ecosystem more deflationary.
Sonic Labs is engaged in developing the EVM-compatible Sonic Layer 1 blockchain. The team was previously known as Fantom Foundation.
According to CoinGecko, the market capitalization of S is $989.34 million, with the asset priced at $0.3.
Back in May, a Singaporean court approved the liquidation of Multichain Foundation following a lawsuit by Sonic Labs to recover damages from a cross-chain protocol hack in 2023. A third of this amount belonged to Sonic Labs.