Author: AJC, Messari Research Manager; Translator: Golden Finance xiaozou

1. Summary of key points

SONIC token completes TGE (token generation event). SONIC’s fully diluted valuation (FDV) is $2.14 billion, making it the ninth most valuable L2 token by FDV and the first active Solana-based L2 token.

Sonic SVM’s first TikTok game SonicX is a tap-to-earn (click and earn) game based on the blockchain. It requires registering a TikTok account and has attracted more than 2 million users to register.

The total supply of SONIC tokens is 2.4 billion, strategically allocated to support ecosystem growth, validator rewards and community engagement. The initial token circulation of TGE is 15%, and 57% of the total supply is allocated to the community.

Sonic SVM outlines a clear three-phase roadmap. Milestones include the HyperGrid shared state network in the first phase, the mainnet Alpha release in the second phase (key services such as bridging and oracle), and the third phase. Phased ecosystem expansion (additional SVMs and enhanced staking mechanisms).

2. Introduction to Sonic SVM

Sonic SVM (Sonic) is an atomic Layer-2 (L2) expansion solution on Solana, aiming to provide developers and players with dedicated block space and optimized tools. To improve the efficiency and interoperability of blockchain gaming platforms. First announced in March 2024, Sonic SVM utilizes the innovative HyperGrid extension mechanism to seamlessly integrate with Solana and provide high-performance gaming and efficient transaction rollup. Key features include atomic interoperability, the HyperGrid framework for optimistic rollup deployments on Solana, and the Rush ECS framework to simplify on-chain gaming and autonomous world building. Sonic provides payment, settlement and customer acquisition monetization tools for games and applications. One such application is SonicX, a blockchain “tap-to-earn” gaming platform based on Solana Sonic SVM. It integrates with TikTok, allowing users to log in using their TikTok account to play games and earn rewards. According to reports, the number of users of the platform has exceeded 2 million.

Sonic SVM was created by Mirror World Labs, and the founding team consists of CEO Chris Zhu, COO Alan Zhu, and CTO Jonathan Bakebwa. In June 2024, the project announced the completion of a US$12 million Series A financing, and the previous seed round financing was US$4 million. The investor has a BITKRAFT, Galaxy Interactive, Big Brain Holdings, Sky9 Capital, OKX Ventures, etc.

3. SONIC Token Economics

On December 31, 2024, SONIC token was launched as the main utility token of SONIC SVM. It is designed to provide support for applications in the Sonic SVM ecosystem as well as other SVMs that leverage the HyperGrid framework. The total supply of SONIC tokens is set at 2.4 billion, with allocations dedicated to supporting the growth of the ecosystem and encouraging continued participation.

(1) Allocation

Ecosystem and community (30%): 720 million tokens are allocated for measures to promote ecosystem development and community participation. These tokens will be distributed gradually to promote long-term participation and innovation in the Sonic SVM ecosystem. In addition, funding is included for game studios and dApp developers developing and building within the ecosystem.

Sonic HyperGrid Reward (20%): 480 million tokens allocated to incentivize validator participation. Half of this is allocated to validators who secure the Sonic SVM network, and the remainder is allocated to observation nodes that monitor the network.

Foundation (20%): The Foundation retains 480 million tokens to support the project’s continued development, partnerships, and strategic growth plans. Of course, team members and consultants are included.

Investors (15%): As part of the financing round, 360 million tokens were distributed to investors as a thank you for their financial support of the project.

Early Backers (8%): ​​192 million tokens were allocated to contributors and supporters who shined in the early stages of project development.

Initial Claim (7%): 168 million tokens were allocated to an early distribution to stakeholders and contributors to ensure initial liquidity and participation. This includes Sonic AVS delegators, HyperFuse Node holders, Odyssey participants, SonicX users, World Store point holders and Mirror NFT holders.

TGE’s circulation is 15% of the total token supply, coming from “initial claims” and “ecosystem” allocations. Distributions to "Investors" and "Early Backers" have a 12-month cliff period, followed by a 24-month linear vesting period. Another distribution that is subject to a vesting period is a "fund" distribution, which has an 18-month cliff period followed by a 36-month linear vesting period. As for the Ecosystem and HyperGrid Rewards distributions, there are no clear vesting periods, but as of this writing, neither category has fully concluded.

(2) Utility

SONIC tokens have several core functions that provide utility to token holders:

Transaction medium

SONIC is the main transaction currency of the SONIC SVM ecosystem, supporting the payment of in-game assets, services and other applications. This ensures seamless economic activity across the platform.

Staking

Token holders can pledge SONIC to contribute to the ecosystem. By staking, users can have the right to participate in upcoming events and receive rewards. As of this writing, approximately 21.1 million SONIC are staked, with a maximum APR of 21.27%. In addition, once the Sonic SVM network is online, users can also stake Sonic to support network verification. Stakeholders will be able to earn rewards by distributing their tokens to validators.

Staking Rewards

Stakers will receive SONIC rewards for participating in protecting the network, incentivizing long-term token holdings, and actively participating in the ecosystem.

Governance

SONIC holders have the ability to participate in governance decisions, allowing them to vote on protocol upgrades, distribution changes, and other key proposals.

4. Token Generation Event (TGE)

SONIC token will be released on January 7, 2025. Previously on January 3, users could check whether they were eligible for the initial debt allocation. Eligible users include Sonic AVS delegators, node holders, Odyssey participants, SonicX users, World Store point holders and Mirror NFT holders. Qualified users have the following two options:

Claim all airdrops immediately.

Claim 60% and exercise the remainder within 6 months (calculating from 6 months after TGE) to earn 140% bonus.

In addition, on the same day, SONIC Alpha Vault was announced. This collaborative initiative initiated by Sonic SVM, Live Bonk and Meteora ensures a fair proportional token distribution without front-running. The vault provides 4.5 million SONIC tokens through a pro-rata distribution model with no vesting requirements. The Alpha Vault opened for qualified participants on January 5th, concluding with the TGE.

On the day of release, SONIC’s liquidity was on decentralized exchanges (Raydium and Meteora) and centralized exchanges (OKX, Bybit, KuCoin, Bitget, Upbit, Gate , Mexc, Backpack, Trubit, Hashkey, BingX, etc.) are supported. As of this writing, SONIC’s fully allocated value is $1.94 billion, making it the ninth most valuable FDV L2 token. In addition, SONIC is the only Solana-based L2 token among the top ten tokens and is also the first token to go online.Additionally, as of this writing, 42,700 wallets hold SONIC.

5. Roadmap

Sonic SVM’s roadmap outlines three progressive stages of development, each moving towards the development and expansion of its ecosystem. The three-phase development roadmap highlights key milestones from initial network setup to expansion of the entire ecosystem, highlighting the importance of technology development and community engagement.

Phase 1: Network Generation (Q4 2024 - Q1 2025)

The Network Generation phase focuses on establishing Sonic SVM’s infrastructure and launching key partnerships . During this phase, the HyperGrid shared state network will be launched, enabling the creation of a network of interconnected SVMs to facilitate seamless interoperability. In addition, a decentralized node set called HyperFuse is deployed to ensure the security and integrity of HyperGrid operations. The result of this stage is the official birth of the Sonic SVM network.

Phase 2: Mainnet Alpha release (first quarter of 2025)

Mainnet Alpha release marks the transition from testnet to mainnet. The mainnet Alpha deployment launched major services including bridging, DEX, oracle and NFT programs. At this stage, SonicX will also launch Android and iOS apps. Sonic Bridge will also support asset transfers for tokens such as SOL, sSOL, sonicSOL, and stablecoins such as USDC and USDT. In addition, all HSSN validators are activated to effectively protect network security and operate the network.

Phase 3: Ecosystem Expansion (Q2 2025)

The final phase focuses on expanding the Sonic SVM platform to accommodate a wider range of developer and user needs. This phase includes integrating the new Sonic Virtual Machine (SVM) via the HyperGrid Optiistic Rollup Stack. Sonic Grid V2 will be released on the test network, followed by mainnet deployment. In addition, a SONIC staking program was launched, allowing SONIC holders to stake and entrust their tokens to HSSN verifiers to earn rewards, and a penalty mechanism was adopted to ensure network security. Finally, the RUSH ECS framework will expand and support new SDK clients to support more on-chain games and use cases.

Intelligent Agent Center developed in partnership with Injective

One example of ecosystem expansion is the collaboration between Sonic SVM and Injective. Sonic SVM and Injective have collaborated to develop a cross-chain intelligent agent center that enables automated, decentralized transactions between multiple blockchain networks. The center leverages Sonic’s Programmable Asset Transfer Protocol and Injective infrastructure to enable interoperability. It will be launched as an SVM using the HyperGrid framework. This cooperation aims to simplify cross-chain operations and improve the efficiency of decentralized AI applications.

6. Summary

Sonic SVM is an innovative approach to blockchain scalability and interoperability, tailored for gaming applications on Solana. Through its innovative HyperGrid scaling mechanism and RUSH ECS framework, Sonic SVM provides developers and users with a high-performance L2 solution that solves the industry's most pressing challenges, including scalability, transaction costs, and user experience fragmentation.

SONIC tokens are launched as utility tokens for the ecosystem, ensuring economic functionality and incentivizing participation, with staking, governance and developer rewards playing key roles. The well-thought-out token economics structure, coupled with a well-executed TGE, is a good example of Sonic SVM’s strategic thinking in promoting adoption and liquidity. TGE has a token circulation of 15% of the total supply and is supported by major decentralized and centralized exchanges. Sonic SVM has positioned itself as the first Solana-based L2 in the FDV top 10 .

Sonic SVM’s three-phase roadmap depicts clear milestones, from basic network generation to ecosystem expansion and cross-chain integration. Strategic collaborations, such as its partnership with Injective to develop an intelligent agent hub, further demonstrate its commitment to innovation. Sonic SVM is ready to play a leading role in shaping the future of blockchain gaming and decentralized applications.