The organization behind the decentralized Fantom network, Fantom Foundation, announced a financial commitment to support the launch of a new and faster network called Sonic. On June 20, the Fantom Foundation announced that it would allocate 200 million Fantom, worth approximately $120 million, from its treasury to help developers and companies move their projects to the Sonic network.
Notable Move by the Fantom Team
The committed funds will be used to find and secure top-tier partners who can help build and grow the Sonic network. These partners include developers building applications directly on Fantom, developers creating decentralized applications (DApps), and partners providing essential tools and services.
However, the money comes from smart financial strategies led by Fantom network creator Andre Cronje, without increasing the total token supply. The initial focus of these allocations will be to provide strategic grants to applications already within the Fantom ecosystem, prioritizing those showing strong interest in using Sonic technology.
This development follows the creation of a new foundation to facilitate the upcoming launch of the Sonic network. Fantom’s Sonic Foundation will oversee the management of Sonic, handle the network treasury, organize partnerships, and develop the DApp ecosystem.
Details on the Process
According to Fantom Foundation CEO Michael Kong and the Fantom development team, Sonic will feature a new Layer-1 solution and an integrated Layer-2 that directly connects the EVM-compatible network to the Ethereum network. Thanks to the architecture of Sonic Chain, users of the soon-to-be-released Sonic network will reportedly be able to leverage Ethereum’s extensive ecosystem of decentralized applications, liquidity providers, and community.
This is not the first incentive provided by the Fantom Foundation for a purpose. In May, the Layer-1 blockchain Fantom set aside $6.5 million worth of native FTM tokens to reward developers, promoting the idea of more secure altcoins.
Additionally, in May 2023, a new Fantom Opera network team program called the transaction fee monetization program was launched to allow developers to earn money from transaction fees collected from users. Notably, the program pays eligible developers 15% of the total transaction fees generated by their applications.
