Sonic Labs’ native token, S, gained 17.7% after the company decided not to implement its annual token inflation plan this year.
Sonic has announced that within the current token economy, 47,625,000 S-tokens are expected to be minted annually to fund the network’s growth. The first allocation took place on June 18, 2025 and it was clarified that no coinage took place this year.
The project team reported that work is underway to completely eliminate inflation in the S supply. However, they added that the main issue to be resolved in this process is validator rewards. Sonic Labs stated that they are working on funding validators to maintain network security.
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The Sonic ecosystem is also closely tied to Andre Cronje, a leading figure in the DeFi world. Cronje received significant support from the community with the DeFi projects he developed in the past and was referred to as the ‘Father of DeFi’. Cronje, who played an important role in Fantom’s rise, caused sharp fluctuations in the FTM price when he left the project and later returned.
After Fantom’s rebrand to Sonic, the S-token experienced significant losses in value, and Cronje’s departure from Sonic further dented investor confidence.
*This is not investment advice.