Winds of Change in Altcoins! After Uniswap (UNI), Another Surprise Altcoin Announces Its Deflationary Move!
Sonic Labs, formerly known as Fantom, announced a new token burn system for its native token 'S'. The system introduces a deflationary token economy by using fee-based token burns and rewarding developers and validators. Transaction fees will be allocated as follows: 15%-90% to developers, 10% to validators, and the remainder burned to create deflationary pressure. The system aims to support ecosystem growth and long-term value alignment, and it will be subject to an on-chain governance vote. No specific date for the vote has been announced.
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Altcoins and New System Proposals
Altcoins continue to innovate with new system proposals. Following Uniswap (UNI)'s massive burn system launch a few days ago, Sonic Labs has now introduced its own new system. Formerly known as Fantom, Sonic Labs rebranded as Sonic and launched the “S” token last year.
Sonic Labs' New Token Burn System
Sonic Labs announced its new token burn system designed to promote both deflationary measures and developer rewards. Sonic Labs CEO Mitchell Demeter revealed plans for a deflationary token economy model, referred to as a “token burn based on fee income” for its native S token. This approach involves tiered fee rewards for builders and validators, while incorporating S token burns to create deflationary pressure across the ecosystem.
Transaction Fee Distribution Under the New System
Under the new proposed system, transaction fees will be distributed as follows:
- 15% to 90% of the fees will go to network developers as rewards.
- A fixed 10% will be allocated to validators.
- The remainder will be burned to drive deflation.
This fee distribution aims to support ecosystem growth by incentivizing developers and validators while strengthening the long-term value of the S token.
Sonic's Vision and Deflationary Goals
Mitchell Demeter emphasized Sonic's ambition to be not only the fastest but also the most functional and developer-friendly network. He highlighted the importance of increasing deflation and fostering long-term value alignment. The new system will integrate on-chain governance, requiring community approval to formalize and implement the burn mechanism.
Governance Vote Timeline
The on-chain governance vote will determine whether the new burn system is approved. Although no specific timeline for the vote has been announced, Sonic Labs remains committed to presenting the proposal to its community. If approved, the burn system will officially go live.
Comparison to Uniswap's Burn System
As a comparison, Uniswap recently introduced a massive burn system for its native token, UNI. The system was reportedly designed to burn 10% of the token supply, which resulted in a price increase of over 30% within a single day. Sonic Labs appears to follow a similar approach, borrowing inspiration from Uniswap’s successful implementation.
*Disclaimer*
This is not investment advice.