Sonic updates its ETF token allocation plan: Execution will only be implemented when the S price is above $0.50, with a maximum issuance size of $50 million.

Sonic Labs has released an update to its ETF token allocation implementation plan. Previously, the Sonic community had passed a governance proposal authorizing up to $50 million worth of S tokens for potential US-listed ETFs to facilitate their entry into the regulated US market. However, following the proposal's passage, due to a weakening overall market environment and a significant decline in the price of S, Sonic Labs decided to postpone implementation, refraining from minting any related tokens during this period to avoid increasing supply at unfavorable price levels. The announcement stated that implementing the original plan at the current price would require issuing over 600 million additional S tokens, significantly deviating from the original intent of the governance proposal, and therefore, this plan will not be adopted. To better align the interests of token holders, Sonic Labs clarified new implementation constraints: ETF allocations, corresponding to a maximum of 100 million tokens, will only be minted when the S price is above $0.50; the total token value is strictly capped at $50 million, with priority given to issuing fewer tokens at higher price levels; any implementation deviating from these conditions will not occur. Sonic Labs also emphasized that the S tokens used in the ETF will be locked within the regulated product and will not enter the secondary market for circulation, thus avoiding any additional selling pressure. The team stated that US-listed ETFs remain a long-term strategic priority, aiming to provide institutional investors with compliant Sonic exposure, and any future adjustments will continue to be implemented through clear communication and governance processes.