Sonic Labs, the team behind the Sonic blockchain, has approved a plan to allocate up to $50 million worth of S tokens as seed capital for a potential U.S.-listed ETF.

The goal is to give $S exposure to institutional capital through traditional financial products. However, the plan was previously paused due to weak market conditions, low liquidity, and a sharp decline in the S token price, meaning no tokens have been issued so far.

To avoid supply dilution, Sonic will only consider moving forward once S trades above and stabilizes above $0.50. At that level, they would issue up to 100 million S tokens, instead of over 600 million if launched at current prices.

These tokens would be locked within the ETF, not sold on the open market, and used solely for legal structuring and initial liquidity—minimizing sell pressure and reassuring the community.

While an #etf is viewed as a long-term opportunity to attract institutional investors, it is not a short-term priority due to U.S. regulatory hurdles and institutional focus on major assets like Bitcoin and Ethereum. Sonic’s priority remains protecting S token value, activating the plan only when market conditions can absorb supply without price disruption. #SonicLabs