Sonic Labs made a quiet but smart move 🧠

According to Odaily, Sonic Labs has announced an update to its ETF token allocation strategy. Previously, the Sonic community approved a governance proposal authorizing up to $50 million worth of S tokens for a potential U.S.-listed ETF to facilitate entry into the regulated U.S. market. However, following the proposal's approval, Sonic Labs decided to delay execution due to a weakening market environment and a significant decline in the S token price, opting not to mint any related tokens to avoid increasing supply at unfavorable price levels.

The announcement stated that executing the original plan at current prices would require issuing over 600 million additional S tokens, which deviates from the proposal's original intent. Therefore, this plan will not be adopted. To better align with token holders' interests, Sonic Labs has set new execution constraints: ETF allocations will only be minted if the S token price exceeds $0.5, with a maximum of 100 million tokens. The total token value is strictly capped at $50 million, with a preference for issuing fewer tokens at higher price levels. Any execution deviating from these conditions will not occur.

Sonic Labs also emphasized that the S tokens used for the ETF will be locked within regulated products and will not enter the secondary market, thus not increasing market selling pressure. The team reiterated that a U.S.-listed ETF remains a long-term strategic focus, aiming to provide institutional investors with compliant exposure to Sonic. Any future adjustments will be communicated and advanced through clear communication and governance processes.