Sonic Labs, an EVM-compatible blockchain, has announced an airdrop of 200 million $S tokens to reward early adopters and loyal users. The program incorporates a unique deflationary mechanism, designed to increase the value of the token over time.
Airdrop Structure and Vesting Schedule
The initial distribution allows recipients to immediately receive 25% of the allocated $S tokens on the airdrop claim date. The remaining 75% will be locked in a nine-month vesting schedule, issued as ERC-1155 tokens (fungible NFTs).
The deflationary mechanism includes a linear decay model with a token burn factor. If a user claims to receive vested tokens before the expiration of the vesting period, a portion of these tokens will be burned. The burn rate decreases over the nine-month period, meaning that the earlier the claim, the higher the percentage of tokens burned.
Benefits of Deflationary Airdrops
- Reduced Supply: Early claim triggers token burn, reducing the total supply of $S and potentially increasing its value.
- Incentivized Holding: Users are encouraged to hold tokens until the end of the vesting period to avoid burn penalties, promoting long-term investment.
- Increased Participation: The burn mechanism incentivizes users to stay active in the Sonic network, increasing on-chain activity.
- Speculation Opportunities: Vested tokens, represented as ERC-1155 NFTs, can be traded on secondary markets, providing flexibility and speculative opportunities without triggering a burn mechanism.
Fantom Foundation Involvement
In June, Fantom Foundation allocated up to 200 million FTM (worth $122 million at current exchange rates) to the Sonic Labs Innovation Fund. Prior to that, Fantom Foundation completed a $10 million strategic funding round to support Sonic Labs, backed by Hashed, UOB Ventures, Signum Capital, and Aave Foundation. Currently, FTM is priced at $0.61, with a fully diluted value (FDV) of $1.94 billion. Fantom also changed its name to Sonic.
This December, Sonic Labs will launch Sonic, a high-throughput layer-1 blockchain, using its native token $S. The deflationary airdrop is part of a strategy to increase early participation and adoption in the ecosystem.
Sonic Labs’ deflationary airdrop is an innovative method of token distribution. By integrating a linear decay model and burn mechanism, Sonic Labs aims for sustainable growth and promotes long-term user engagement, which can increase the value of the $S token.