Sonic (S, formerly FTM) has updated the terms and conditions for its ETF token allocation plan. Sonic Labs reminded users that previously, community voting approved the allocation of up to $50 million worth of S tokens for ETFs eligible for listing in the US.
However, the company announced that it has postponed the implementation of the plan due to weakening market conditions and a significant drop in the S price, and that no tokens were minted during this process to avoid creating supply pressure.
The statement argued that implementing the original plan at current price levels would require the issuance of over 600 million additional S tokens, deviating from the purpose of the governance proposal. Therefore, the old implementation model would not be adopted. Sonic Labs defined new and clear terms to better align with the interests of token holders.
Accordingly, ETF allocations will only be made when the S price is above $0.50, and a maximum of 100 million S tokens can be minted. The total allocation value is strictly limited to $50 million, with smaller amounts prioritized at higher price levels. It was specifically stated that no exceptions to these conditions will be made.
Sonic Labs also stated that the S tokens used in the ETFs will remain locked within the regulated product and will not enter the secondary market, thus not creating additional selling pressure. The company argued that it sees the ETFs to be listed in the US as a long-term strategic priority, aims to provide compliant Sonic access to institutional investors, and that any future updates will be shared through transparent communication and governance processes.
*This is not investment advice.