Fantom Foundation Unveils Sonic Proposal to Accelerate Transition

• According to the latest report, Fantom Foundation has officially released its Sonic Proposal meant to facilitate network migration. 

• The proposal has also been designed to reduce the minimum and maximum lock-up period for optimal rewards.

Fantom Foundation has unveiled its fourth Sonic proposal to enable the community to support the acceleration of validator and stakeholder transition to the new Sonic Network from the Fantom Opera chain. Our review of the official press release discloses that the proposal would outline the plan for Opera-to-Sonic migration for validators’ block reward. In addition to that, it would seek to leverage the potentially ~$750m+ LST ecosystem and improve its overall adoption and Decentralized Finance (DeFi) activities.

Currently, block rewards for Opera validators are expected to last for 1,344 days. Interestingly, the new proposal seeks to reduce this drastically. 

📣 Governance News 📣
Our 4th #Sonic proposal is here, seeking to accelerate the transition of our validators and stakeholders to the new Sonic network by: 🚀 Boosting Gas Monetization revenue to as much as 90% with a new burn model that increases burn rate for transactions… pic.twitter.com/GofSc7zezr— Fantom Foundation (@FantomFDN) June 27, 2024

According to a report intercepted by Crypto News Flash, the annual target of Sonic’s Annual Percentage Yield (APR) is fixed at 3.5%. To ensure that the target is achieved without inflation in Sonic’s first four years, plans have been put in place to ensure the smooth migration of the remaining $FTM block rewards from Opera to Sonic. After this, the opera’s remaining FTM block rewards would target the rate range of 0%. 

Maximum Stake and Yield Target by the Fantom Foundation

Another objective of the proposal is to reduce the minimum and maximum lock-up period for optimal rewards. According to the report, this would be from Opera’s current one-week to one year and a seven-day un-delegation model to a simplified minimum period of 14 days. 

With the reduction of the locking period and the provision of more liquidity to validators and stakers, a return of 3.5% has been targeted when 50% of the network has been staked with a 1.75% inflation rate per annum. The rate would be sustained for the first four years through the migration of the remaining $FTM block rewards for the Sonic Network in the form of $S. 

By locking in the proposed 3.5% target block reward rate for validators, the network would be able to increase token burn and provide higher fees for developers. For Non-GasM Participants, 50% of the transaction fees would be burnt with the remaining given to validators. For GasM Participants, up to 90% of the reward would be allocated to a specified number of dApps with the remaining sent to validators as a fee. 

GasM is a novel method of rewarding builders on Fantom for the demand they drive to the network. Sonic’s scalability allows the network to offer up to 90% “cash back” on gas used for an exclusive number of dApps. The number of GasM applications will require approval of at least 55% approval and 10% quorum through any voting mechanism available on the chain (e.g. fwallet governance, snapshot).

According to reports, the proposal ensures that validators grant the Foundation the power to create and activate “Migration Validator/Staker Unlock” during the Sonic launch. Upon completion of successful launch, a token comic migration plan with a concise Sonic whitepaper would be finalized by the governance vote.