Sonic Labs Pushes $150M Governance Vote to Bring $S ETF and PIPE to Wall Street

TLDR:

• Sonic Labs proposes $50M ETF allocation and $100M PIPE vehicle to expand into U.S. financial markets.
• Governance proposal includes forming Sonic USA LLC with a CEO, team, and NYC headquarters.
• The plan introduces higher token burn rates to create long-term $S deflationary pressure.
• Sonic holds fewer reserves than rivals and aims to modernize tokenomics for institutional adoption.

Sonic Labs has put forward its first governance proposal, targeting entry into U.S. financial markets. The plan outlines a potential ETF, a NASDAQ PIPE vehicle, and the creation of a new American entity. Community members will decide whether to approve token issuance for these initiatives. 

The move follows years of working under older tokenomics that limit strategic flexibility. Sonic Labs said the proposal marks a turning point as the project seeks to compete with rivals holding larger reserves.

Sonic Labs Targets U.S. Crypto ETF and PIPE

According to Sonic Labs, the proposal seeks approval to allocate $50 million for an exchange-traded product and $100 million for a NASDAQ-listed PIPE structure. 

Both vehicles would focus on purchasing $S tokens directly from the spot market. The plan involves partnerships with a regulated ETF provider and BitGo for custody.

In its announcement on X, Sonic Labs explained that the PIPE would serve as a balance sheet tool for a NASDAQ-listed vehicle. 

Tokens assigned to this structure would remain locked for three years. The team said this ensures long-term alignment with corporate partners and institutional backers.

The governance vote gives the community two options. The first authorizes token issuance for the ETF, PIPE, and Sonic USA development. The second rejects all proposals, keeping tokenomics unchanged. Sonic stated that the decision rests fully with holders.

Andre Cronje, who has helped lead strategic efforts, has previously emphasized that Sonic’s treasury position is much smaller than its peers. The proposal directly addresses this disadvantage by creating a reserve designed for institutional entry points.

Sonic USA and Tokenomics Overhaul

The proposal also outlines the launch of Sonic USA LLC, incorporated in Delaware. Sonic Labs said this entity would serve as the American base of operations. 

A new CEO, marketing leads, and a capital markets team would be hired under this structure. An office in New York City is also part of the plan.

Performance packages are expected for incoming executives, aligning them with Sonic’s long-term growth. 

The entity would engage directly with U.S. regulators and policymakers to strengthen the chain’s institutional presence. Sonic Labs stated this unit will drive adoption and help expand partnerships.

Changes to tokenomics form a central part of the proposal. The updated fee model increases the burn mechanism in transaction processing. For certain transactions, half of the fees would be destroyed, making $S more deflationary over time. 

Sonic Labs said the update will help balance supply pressures while rewarding validators and builders.

In its background note, Sonic Labs explained that it began with just three percent of its supply due to the Fantom community takeover. Competing chains, by contrast, control up to 80 percent of their tokens. The proposal aims to level the field by granting Sonic access to reserves it can deploy in strategic deals.

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