Sonic ve(3,3) Flywheel Comeback + Money Printers
Sonic is the most overlooked comeback in crypto.
While Sei, Berachain, and Monad are still stuck in testnet hype, Sonic is already live, with over 80+ years of runway they are stacking TVL, and rewarding builders in ways no other chain has dared to.
10K+ TPS, sub-second finality, and a FeeM model that gives 90% of gas fees back to devs, its building a DeFi flywheel.
Dropping a $190M+ airdrop bomb and here is what you need to pay attention to get up to 145k% APY 🧵👇
Credits to @HarisEbrat
In late 2024, Fantom officially rebranded to @SonicLabs, returning to the Layer‑1 (L1) battleground with renewed focus on speed, ecosystem incentives, and cross-chain interoperability.
Within just a few months, Sonic’s TVL has risen sharply, and new protocols are flocking to launch on this chain. More intriguing still is Sonic’s upcoming 190+ million $S token airdrop, a catalyst that has drawn in DeFi builders and yield farmers alike.
1. Origins & Background
Most people brushed off @SonicLabs at launch because, we already have a million L1s promising "high speed, low fees."
But here’s why Sonic is actually different:
🔹 It’s Already Live – And have a runway of 80+ years. Unlike Sei, Berachain, and Monad (which are still in testnet), Sonic is actually running real transactions, real liquidity, and real users.
🔹 It’s Designed to Reward Builders – Sonic’s FeeM model gives 90% of gas fees back to dApp developers, meaning projects actually make money from user activity.
🔹 The Airdrop Is Huge – 190M+ S tokens are being airdropped, rewarding users for staking, LPing, and engaging with the ecosystem.
🔹 It’s Built on DeFi’s Best Ideas – Sonic is adopting and improving the ve(3,3) model while integrating state-of-the-art EVM scaling.
The Flywheel Effect in DeFi
DeFi flywheel works because of a timing mismatch between capital deployment and true value realization.
1️⃣ Liquidity enters → Prices go up → More people FOMO in
2️⃣ Early adopters get rewarded → More users enter → Ecosystem "growth" kicks in
3️⃣ New participants hold, stake, or compound → Flywheel keeps spinning
Back in 2022, @AndreCronjeTech—one of DeFi’s most influential minds—introduced ve(3,3) through Solidly Exchange on Fantom.
If you’re wondering, yes, this is the same Andre Cronje behind Yearn Finance ($YFI)—the token that went from $6 to $30,000 in two months during DeFi Summer.
ve(3,3) is a hybrid of Curve Finance's veToken model and Olympus DAO’s (3,3) game theory.
🔹 Vote-escrowed (ve) tokens – The longer you lock tokens, the more rewards you get.
🔹 (3,3) game theory – Incentivizes staking rather than selling to reduce sell pressure.
It’s about staking in a way that reinforces liquidity and rewards long-term holders.
Instead of rewarding mercenary capital with high emissions (like most liquidity mining schemes), ve(3,3) creates a system where protocol fees go directly to token lockers, rewarding those who stick around.
The flywheel effect behind ve(3,3) was a key driver behind DeFi's boom.
Protocols that used this model saw massive liquidity growth as everyone rushed to stake their tokens, knowing that more users meant higher yields.
This worked... until it didn’t.
Because every flywheel eventually slows down. Liquidity can’t increase forever, and once early adopters decide to cash out, the cycle shifts from growth mode to exit mode.
Which brings us to Sonic.A Brief History
Fantom’s Rebrand
Formerly known as Fantom (FTM), the chain faced setbacks stemming from the well-documented Multichain bridge fiasco (attributed to government asset seizures and exploit-related instability). Liquidity and stablecoins left the ecosystem in droves, TVL collapsed, and developer morale dipped.Sonic’s Emergence
In December 2024, Fantom relaunched as Sonic, retaining EVM compatibility but introducing major technical upgrades, improved bridging security, and an aggressive builder-centric token economics model. The rebrand also coincided with the return of notable builder Andre Cronje and a pivot to high-speed, parallel transaction execution.
Why It Matters Now
Many new L1s with advanced execution (Sei V2, HyperEVM, Monad, Berachain, MegaETH) remain in testnet or pre-launch status. By contrast, Sonic has a live mainnet, already stress-tested by real TVL inflows.
Sonic’s sub-second finality and parallel transaction engine let it reach speeds on par with specialized L1s/L2s, capturing attention from DeFi builders and sophisticated yield farmers ready to move capital to faster, cheaper chains.
2. Key Differentiators at a Glance
Below is a summary of Sonic’s standout features, inspired by the first shared image (“How is Sonic different from other chains?”).
1. Speed
Sonic prioritizes high-speed transactions, making it one of the fastest EVM-compatible Layer-1 (L1) blockchains. Key features:
🔹 High Transaction Throughput
Sonic’s focus on high-speed, parallel execution, and efficient state management allows it to outperform many existing EVM chains in scalability and transaction cost optimization.
10,000+ TPS (Transactions Per Second)
This high throughput allows Sonic to handle massive transaction loads, making it suitable for large-scale DeFi and GameFi applications.
Parallel Execution via Leaderless sBFT Consensus
Unlike traditional blockchains that rely on sequential execution, Sonic’s consensus mechanism processes multiple transactions in parallel.
This enhances speed while maintaining security and finality.
🔹 Efficient State Management
State Pruning (90% Reduction in Storage Bloat)
By removing unnecessary blockchain data, Sonic keeps node operations lightweight and reduces hardware requirements for validators.
This improves decentralization, as more participants can run full nodes.
🔹 Dynamic Gas Model
Ensures Low Fees Even with High Usage
The network automatically adjusts gas costs based on demand, preventing congestion spikes.
This is crucial for maintaining affordability in high-traffic scenarios, such as token launches and DeFi trading.
2. Interoperability
Sonic is designed for seamless cross-chain connectivity, allowing assets and liquidity to move freely between blockchains. Sonic’s interoperability model prioritizes security and reliability, addressing the key weaknesses of existing multi-chain ecosystems.
🔹 Sonic Gateway – A Trustless Native Bridge
Does Not Rely on Third Parties
Unlike traditional bridges that introduce centralized risks, Sonic’s Gateway is natively integrated into the protocol.
This reduces vulnerability to hacks and rug pulls.
🔹 Fail-Safe Recovery System
Users Can Retrieve Assets Even If the Network or Bridge Goes Offline
A major concern with blockchain bridges is the risk of downtime or exploits. Sonic’s fail-safe system ensures that assets remain recoverable, even if the bridge becomes temporarily unavailable.
🔹 1:1 Asset Backing Without Wrapped Tokens
Assets Moved Between Sonic and Ethereum Stay Fully Backed
Instead of creating wrapped versions (e.g., wBTC, wETH), Sonic ensures that native assets retain their original value.
This improves liquidity and usability while reducing smart contract risk associated with wrapping mechanisms.
3. Incentives
Sonic offers one of the most developer-friendly incentive structures to encourage ecosystem growth. Sonic’s incentive model aligns network success with developer profitability and user engagement, fostering organic ecosystem growth.
🔹 Gas Fee Monetization (FeeM Program)
Developers Earn 90% of Transaction Fees
Unlike traditional blockchain models where fees are burned or distributed to validators, Sonic redirects gas fees to the applications that generate transactions.
This creates a direct financial incentive for developers to build high-usage dApps.
🔹 Performance-Based Rewards
Higher Usage Apps Earn Gems
Developers who build popular applications receive additional Gems, which can be passed down to users.
This incentivizes both developers and end-users to remain active in the ecosystem.
🔹 200M $S Airdrop via the Sonic Innovator Fund
6% of Supply Allocated to Users
Users earn points by interacting with eligible protocols, providing liquidity, or engaging in governance.
This structure encourages both long-term participation and DeFi experimentation.
4. Smart Contracts
Sonic enhances the Ethereum Virtual Machine (EVM) experience with a more optimized and flexible framework. Sonic’s smart contract enhancements make it an ideal alternative to traditional EVM environments, providing better cost efficiency, execution speed, and flexibility.
🔹 Sonic Virtual Machine (SVM)
Optimized Smart Contract Performance
SVM refines the execution of Ethereum-based contracts, reducing gas fees and increasing efficiency.
This is especially important for complex DeFi applications, automated trading strategies, and gaming environments.
🔹 Custom Fee Tokens for dApps
Applications Can Use Their Own Tokens for Transaction Fees
This feature allows projects to cover gas costs in their native token, improving user experience.
Instead of forcing users to hold $S for gas, developers can set their own fee structures.
🔹 Seamless EVM Compatibility
Deploy Ethereum-Based Smart Contracts Without Modifications
Developers can migrate their dApps from Ethereum, Arbitrum, Optimism, or other EVM-compatible chains with minimal effort.
This ensures a low-friction onboarding experience for projects transitioning to Sonic.
3. Tokenomics & Airdrop Mechanics
The S token is the native asset of the Sonic network and serves multiple functions:
🔹 Utility & Use Cases
Transaction Fees: Used to pay for gas fees on the Sonic network.
Validator Operations: Required for running validators and securing the network.
Staking: Participants can stake S to help secure the chain and earn rewards.
Governance: Token holders can vote on protocol changes and ecosystem decisions.
🔹 Inflation & Minting
Linear Inflation Model:
Six months post-launch, Sonic will begin minting new tokens at a fixed rate.
1.5% annual inflation (~47.6M S per year) for six years.
Minted tokens will be allocated for network growth, marketing, partnerships, and Sonic University.
Deflationary Countermeasures:
Unused minted tokens will be burned at the end of each year.
This ensures that new issuance is solely for ecosystem expansion and not treasury accumulation.
🔹 Burning Mechanisms
Sonic incorporates multiple burning mechanisms to balance token emissions:
Unused Minted Tokens Burn: Any unutilized S from the 1.5% annual inflation schedule is burned.
FeeM Mechanism Burn:
dApps must be approved to participate in FeeM (Gas Fee Monetization).
Non-participating dApps: 50% of transaction fees from these dApps are automatically burned.
Airdrop Burn: Specific token distributions and airdrop models include vesting penalties that partially burn tokens upon early claims.
🔹 Migration from Fantom Opera
Block Rewards Transition:
Validators and stakers migrating from Fantom Opera to Sonic will see Opera’s block rewards gradually reduced to zero.
The saved block rewards will be redirected to Sonic validators as incentives.
Staking Withdrawal Period:
Staked S tokens have a 14-day withdrawal period, maintaining a standard security mechanism for unstaking.
Supply & Inflation
Initial: Sonic started with the same total supply as Fantom (~3.175B tokens), facilitating 1:1 swaps from FTM → S.
Ongoing Inflation: Sonic introduces a 1.5% per year inflation schedule for up to 6 years, intended to fund ecosystem growth. Any unspent tokens are burned, preventing uncontrolled dilution.
Fee Burns: 50% of transaction fees are burned by default. Combined with potential usage growth, $S could become net deflationary once network activity is high.
190.5M $S Airdrop (June 2025)
Purpose: Attract new users, reward early adopters, and stimulate DeFi usage on Sonic.
Points System: You accumulate “points” by:
Holding whitelisted assets in your Sonic wallet (e.g., scUSD, stS, USDC.e, etc.).
Interacting with dApps (liquidity provision, lending, borrowing).
Earning GEMS from specific protocols in the ecosystem (developer-defined).
Vesting: 25% of the airdrop can be claimed immediately. The remainder vests over ~9 months (or you can accelerate but pay a penalty, which partially burns tokens).
Below is a table illustrating how points might correlate with potential airdrop allocations:
(Exact values subject to change; see MySonic Dashboard for live data.)
4. Gas Fee Monetization (FeeM) Program
Sonic’s FeeM program, sometimes described as a “Web2 ad-revenue model applied to blockchains.” Up to 90% of gas fees from transactions on a given dApp are returned to that dApp’s developer. Key aspects:
When users interact with a contract, part of their transaction fee automatically reroutes to the developer’s address (or a designated treasury).
This partial diversion means fewer tokens are burned, slightly reducing the chain’s default deflationary pressure.
Benefits:
Aligns Incentives: dApps that generate real usage earn more from transaction fees.
Attracts Builders: Reduces reliance on external VC or token emission.
Early data suggests top protocols can earn tens of thousands of dollars in fees per week, motivating quality builders to launch on Sonic despite a crowded L1 marketplace.
5. Ecosystem & DeFi Protocols
Current Leading Projects
A concentrated liquidity DEX employing an x(3,3) model (inspired by ve(3,3)).
High TVL (~$100M+), with daily volumes at or above $100M, making it a top DEX on Sonic.
Liquidity providers earn both Swap Fees and protocol-specific rewards (GEMS, xSHADOW).
🔹 Stout
Borrowing and lending protocol.
Potential synergy with scUSD or other stable assets.
A perpetual DEX focusing on advanced trading features, set to launch soon on Sonic.
🔹 Rome, Solis, XPRESS, Hermes Finance
Additional pre-launch projects covering treasury-backed tokens, yield optimizers, or orderbook DEX approaches.
Additional Protocols Mentioned in the Community
🔹 Snake
You can earn 990% APR by staking $GSNAKE
A project introducing a stable-ish token ($SNAKE) pegged 1:1 to $S, with high APR Forest farming pools.
Alternatively, earn over 144,510% APR, if you stake $wS/$SNAKE on @VoltaFarm, which is an auto-compounder on $S Sonic.
🔹 EGGS
Earning over 1700% APR
Provide liquidity and set the range carefully—tighter ranges yield higher APY but earn less frequently, while wider ranges provide more consistent but lower returns—then choose the amount to provide liquidity.
You can also mint EGGS by depositing $S or other assets, then use EGGS for leveraged strategies.
Borrow/lending platform for leveraged yield.
Potential token airdrop for early participants.
🔹 Rings Protocol, Spectra Finance, GammaSwapLabs
Derivatives, yield, and vault-based protocols pushing advanced DeFi use cases on Sonic.
6. Yield Opportunities
DeFi farmers have identified Sonic as a place to chase:
High APR DEX Farming:
Pairs like
S/USDC.eorUSDC.e/EGGSon Shadow, Snake, or other DEXs can yield 1000%+ APR (albeit with volatility).Concentrated Liquidity can amplify yields if prices remain in range.
Lending & Liquid Staking:
Stake $S via MySonic or third-party LSD providers (e.g., Beets, Origin) for ~5–8% APR.
Liquid stS can be redeployed into DEX pools, compounding yields.
Airdrop Multiplier:
Protocol-specific “GEMS” or synergy rewards can also boost your overall airdrop points.
A farming strategy could be:
Swap some stablecoins (USDC) for $S on Shadow.
Stake part of your $S to get stS or scUSD.
Form a stS/S or scUSD/USDC.e liquidity pair on a DEX that’s awarding high APR.
Claim your GEMS or xSHADOW, re-stake or compound.
Watch your points accumulate on the MySonic Points Dashboard.
You can get over 300% on stable yield farming on Sonic here with a guide by @phtevenstrong
https://x.com/phtevenstrong/status/1896618600011530384
7. Comparisons to Other L1 Rivals
Sonic’s first-mover advantage among the new wave of high-speed EVM L1s is significant. While competitors remain in testnets, Sonic is capturing real-world liquidity and usage—an edge that might persist if the airdrop plus FeeM can lock in developer loyalty.
There is also a wide field of “fast L1” blockchains exist or are launching soon.
8. Conclusion & Outlook
Sonic represents a bold attempt to resurrect Fantom’s prior success and surpass it with a new approach to L1 economics, bridging security, and high-speed execution. It leverages:
High throughput (~10K TPS)
Sub-second finality (~720 ms)
Generous developer incentives (90% fee monetization, 190M $S airdrop)
Safer bridging (14-day fail-safe)
In the near term, the combination of real-world usage, fresh liquidity, and widespread interest in parallel EVM execution has given Sonic an enviable advantage over competing L1s still in testnet. Of course, sustainability after the June 2025 airdrop remains the chain’s biggest question mark. If user activity and developer confidence persist, Sonic could carve out a permanent place in DeFi’s multichain future.