Fantom Foundation Commits $120M for Sonic Network Launch
It is the main driving force behind the decentralized network that Fantom Foundation has committed to supporting the launch of Sonic, a new and faster network.
On June 20, the Fantom Foundation disclosed its blueprint to direct as many as 200 million Fantom tokens (which would make about $120 million) from its treasury to be utilized for the transition of projects to the Sonic network.
Strategic Utilization of Funds
The funds pledged are planned to be used for the pinpointing and signing of contracts with top-tier developers and companies which can be of massive help to the Sonic network by making it grown and developed. These are developers who work on applications directly on the Fantom platform, developers who are focusing on decentralized applications (DApps), and partners who are providing key tools and services. It is significant to stress that the funds were invested in smart financial arrangements by the Fantom network creator Andre Cronje without any supplementary issuance of tokens.
Sonic to Introduce New L1 Solution
At first, the allocated moneys will be channeled into strategic grants to the existing applications within the Fantom ecosystem, with the primary focus on those that have demonstrated a high level of enthusiasm towards the Sonic technonogy.
This step is the aftermath of Sonic Foundation’s establishment where it has become a subject supervising Sonic’ governance, treasurer of the network, fostering partnerships, and growing the DApp ecosystem. CEO of Fantom Foundation Michael Kong and the development team said that Sonic will come up with a new layer-1 solution and a built-in layer-2 which is the backbone of seamless integration with the Ethereum network, hence the EVM-compatible networks are bridged together.Using the method highlighted above, you will rewrite the existing content but all HTML elements in the input text must be preserved.
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By using the Sonic Chain’s architectural design in the future Sonic network users will get the possibility to access Ethereum’s ecosystem that is made out of decentralized applications, liquidity providers, and community.
Previous Incentives by Fantom Foundation
The firm’s commitment to migration of project to Sonic is not the first time that the Fantom Foundation has provided such services. Afterward, the Fantom network dedicated $6.5 million worth to its native tokens to encourage the developers, in the vein of “safer memecoins.” Additionally, the Fantom Opera network enacted a 15% Gas Monetization Program in May 2023, under which, the eligible developers of the platform will be compensated with 15% of the overall gas fees generated by their applications.
Fantom Reduces Validator Requirement
At the beginning of this year, Fantom Network propagated a 90% slash in the number of validators it required to operate, after which the minimum required assets to operate a self-staking node was reduced from 500,000 FTM to 50,000 FTM. On the one hand of making it a Fantom node, the company is highlighting the decentralization and the potential positive impact on the network.
According to the announcement, the platform is gearing itself for a secure future in the decentralization of networks without some validators controlling the system. Lately, decentralized applications and blockchains have not been able to observe the decentralized finance (DeFi) principles as expected. A prominent factor in this is the costs of staking and validator becoming that put most nodes in the hands of centralized players.
