Sonic, the blockchain formerly known as Fantom, has taken a decisive step toward capturing the institutional market by securing a massive $150 million funding initiative. The vote, completed on September 1, 2025, saw an overwhelming 99.99% of Sonic’s community members in favor of launching a U.S. expansion strategy. This plan includes a $50 million ETF initiative, a $100 million investment program, and the formation of a Delaware-based company. The move marks a significant shift from Sonic’s previous “2018 tokenomics” model, which was criticized for leaving the foundation with minimal resources to fuel growth.
A New Era for Sonic
The voting outcome was no surprise to those who’ve been following Sonic’s evolution. With 860.6 million votes in favor and a mere 51,200 against, the community’s decision reflects a robust endorsement of the proposed strategy. Sonic Labs, the driving force behind the proposal, has been vocal about the need for change. “Our previous model was community-friendly but financially limiting,” remarked a spokesperson. “We’re transforming to compete with blockchains that are increasingly adopting corporate-like structures.”
The new initiative includes the launch of a $50 million ETF, which will be managed by a regulated provider boasting over $10 billion in assets under management. Custody responsibilities will fall to BitGo, a name synonymous with security in the crypto space. This move aligns with the broader industry trend of marrying crypto innovation with traditional finance mechanisms. This follows a pattern of institutional adoption, which we detailed in American Bitcoin Eyeing Nasdaq Debut in September.
A Bold Move into Traditional Markets
In addition to the ETF, the vote paves the way for a private investment in a public equity (PIPE) vehicle listed on Nasdaq. This aspect of the plan is particularly intriguing; Sonic aims to seed the Nasdaq vehicle’s balance sheet with S tokens—locked for a minimum of three years—in exchange for strategic treasury acquisitions. It’s a daring maneuver, one that echoes traditional financial strategies yet is rooted firmly in the crypto ethos. For a deeper dive into similar market strategies, see Gryphon approves reverse merger with American Bitcoin.
“By seeding the Nasdaq entity with locked S tokens, we’re aligning long-term interests,” says an unnamed analyst with knowledge of the strategy. However, not everyone is convinced of its efficacy. Skeptics are quick to point out that while the strategy is ambitious, its success hinges on market dynamics that are notoriously unpredictable.
The plan also introduces a revamped fee mechanism designed to burn more tokens, effectively reducing inflation—a move that has been on the wish list of many token holders. Yet, despite these strategic pivots, questions linger about whether these changes will lead to tangible adoption and growth.
Historical Context and Future Prospects
This isn’t the first time Sonic has attempted a significant overhaul. The blockchain’s rebranding from Fantom to Sonic was initially met with mixed reactions. Back then, the foundation held a mere 3% of tokens at launch—a stark contrast to the 50%-90% controlled by its peers. This left Sonic with limited resources to pursue listings, acquisitions, and partnerships.
“We’re not just playing catch-up; we’re setting a new standard,” says a Sonic Labs insider. The sentiment resonates with the community’s desire to see Sonic secure a foothold in both the crypto and traditional financial arenas. However, whether these strategic initiatives will translate into market success remains to be seen.
As Sonic embarks on this ambitious journey, the crypto community watches with bated breath. The foundation now holds a mandate and the financial muscle to challenge existing players in the ETF market. But with great ambition comes great scrutiny, and Sonic will need to demonstrate that its bold new strategy can deliver real-world results.
In the coming months, the industry will be keenly observing how Sonic navigates the complexities of this dual-market approach. Will the blockchain’s innovative tactics pay off, or will they falter under the weight of their own ambition? Only time will tell, but one thing’s for certain—Sonic is not content to be left on the sidelines.
Source
This article is based on: Sonic Community Approves $150M Token Issuance for U.S. ETF Push, Nasdaq Vehicle
Further Reading
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- American Bitcoin’s Nasdaq Debut: Breaking Down the Listing, Strategy, and the Trump Factor
- US ETFs now a major source of Bitcoin spot trading volume: CryptoQuant
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
