The Fantom Foundation, the driving force behind the decentralized Fantom network, has unveiled a significant financial commitment to support the launch of Sonic, a new, high-speed network.
Recently, on June 20, the Fantom Foundation made a groundbreaking announcement stating that they are allocating up to 200 million of their native Fantom tokens (FTM), valued at approximately $120 million, from their treasury to assist developers and companies in transitioning their projects to Sonic.
The designated funds are intended to be utilized in identifying and partnering with top-tier collaborators who can contribute to the development and expansion of the Sonic network. These collaborators encompass developers creating applications directly on Fantom, developers crafting decentralized apps (DApps), and partners offering essential tools and services.
Notably, the funding originates from astute financial maneuvers spearheaded by Fantom network creator Andre Cronje, without necessitating an increase in the total token supply.
Initially, the primary focus of these allocations will be to provide strategic grants to existing applications within the Fantom ecosystem, with a preference for those demonstrating a strong inclination towards leveraging Sonic technology.
The establishment of a new foundation, the Sonic Foundation, has been set up to facilitate the launch of the forthcoming Sonic chain. This foundation, overseen by Fantom, will be responsible for managing Sonic’s governance, overseeing the network treasury, fostering partnerships, and nurturing the DApp ecosystem.
According to Fantom Foundation CEO Michael Kong and the dedicated development team, Sonic will introduce a novel layer-1 solution and an integrated layer 2 that seamlessly connects the EVM-compatible network with the Ethereum network.
Through the innovative architecture of the Sonic Chain, users of the upcoming Sonic network will reportedly have access to Ethereum’s extensive array of decentralized applications, liquidity providers, and community resources.
This initiative is not the first time the Fantom Foundation has offered incentives to drive progress. In a previous instance in May, the layer-1 blockchain Fantom advocated for “safer memecoins” by setting aside $6.5 million worth of FTM tokens to incentivize developers.
Additionally, in May 2023, the Fantom Opera network team introduced the “Gas Monetization Program,” designed to remunerate developers for the gas fees generated by users of their applications. Eligible developers under this program receive 15% of the total gas fees generated by their apps.
Cointelegraph has reached out to the Fantom network team for further insights into the Sonic Labs fund and is awaiting a response prior to publication.