The Fantom Foundation, the organization behind the decentralized Fantom network, has announced a substantial financial commitment to support the launch of a new, faster network called Sonic. On June 20, the foundation revealed its plan to allocate 200 million Fantom tokens, valued at approximately $120 million, from its treasury to aid developers and companies in transitioning their projects to the Sonic network.
What is the Strategic Focus?
The allocated funds aim to secure top-tier partners vital for building and expanding the Sonic network. Target partners include developers working on the Fantom platform, creators of decentralized applications (DApps), and providers of essential tools and services. This financial strategy, spearheaded by Fantom network creator Andre Cronje, ensures that the total token supply remains unchanged.
How Will Sonic Integrate?
The newly formed Sonic Foundation will manage the Sonic network, handle its treasury, forge partnerships, and develop the DApp ecosystem. According to Fantom Foundation CEO Michael Kong, Sonic will feature a new Layer-1 solution with an integrated Layer-2, designed to connect seamlessly to the Ethereum network. This architecture will allow Sonic network users to tap into Ethereum’s extensive ecosystem of DApps, liquidity providers, and community resources.
Implications for Developers
– Developers can access a $120 million fund for project transitions.
– Strategic grants will prioritize applications already within the Fantom ecosystem.
– Sonic’s architecture offers enhanced connectivity with Ethereum’s vast ecosystem.
– Previous funding initiatives indicate ongoing support for innovative projects.
– Transaction fee monetization programs incentivize developers via revenue sharing.
Earlier incentives from the Fantom Foundation highlight its commitment to fostering innovation. In May, the foundation allocated $6.5 million worth of native FTM tokens to reward developers for promoting secure altcoins. Additionally, a transaction fee monetization program launched in May 2023 allows developers to earn 15% of the total transaction fees generated by their applications.
In summary, the Fantom Foundation’s significant investment in the Sonic network underscores its dedication to advancing blockchain technology. The initiative is poised to attract top-tier partners and developers, further enriching the Fantom ecosystem and offering enhanced integration with Ethereum.