Sonic: The ETF is issued only when the price of S is above $0.5, with a scale not exceeding $50 million

Sonic Labs has announced an update to its ETF token allocation execution plan. Previously, the Sonic community authorized through a governance proposal the use of up to $50 million worth of S tokens for a potential U.S. listed ETF to facilitate its entry into the regulated U.S. market. However, following the approval of the proposal, due to the overall weakening market environment and the significant decline in the price of S, Sonic Labs decided to postpone execution and did not mint any related tokens during this period to avoid increasing supply at unfavorable price levels.

The announcement stated that if the original plan were executed at the current price, it would require the issuance of over 600 million S tokens, which significantly deviates from the original intent of the governance proposal; therefore, this plan will not be adopted. To better align with the interests of token holders, Sonic Labs has clarified new execution constraints: S tokens will only be minted for ETF allocations when the price of S is above $0.50, corresponding to a maximum of 100 million tokens; the total token value is strictly capped at $50 million, with a preference for issuing fewer tokens at higher price levels; any execution that deviates from the above conditions will not occur.

Sonic Labs also emphasized that the S tokens used for the ETF will be locked within regulated products and will not enter circulation in the secondary market, nor will they increase market selling pressure. The team stated that a U.S. listed ETF remains a long-term strategic focus, aimed at providing compliant Sonic exposure for institutional investors, and any future adjustments will continue to be communicated clearly through governance processes.