Sonic SVM: Token Generation Event

Key Insights

• The SONIC token underwent its Token Generation Event (TGE). SONIC has a fully diluted valuation (FDV) of $2.14 billion, making it the 9th most valuable L2 token by FDV and the first live Solana-based L2 token.
• Sonic SVM’s first TikTok game, SonicX, is a blockchain-based tap-to-earn game. It requires to sign up with a TikTok account, and over 2 million users have been onboarded.
• The total supply of 2.4 billion SONIC tokens is strategically allocated to support ecosystem growth, validator rewards, and community engagement. Initial token circulation at TGE was 15%, with 57% of the total token supply allocated to the community.
• Sonic SVM has outlined a clear three-phase roadmap, with milestones including the HyperGrid Shared State Network in Phase 1, the Mainnet Alpha Launch with critical services like bridges and oracles in Phase 2, and ecosystem scaling with additional SVMs and enhanced staking mechanisms in Phase 3.

Primer

Sonic SVM (SONIC) is an atomic Layer-2 (L2) scaling solution on Solana designed to improve the efficiency and interoperability of blockchain-based gaming platforms by providing dedicated blockspace and improved tools for developers and players. First announced in March 2024, Sonic SVM leverages the novel HyperGrid scaling mechanism to integrate seamlessly with Solana and deliver high-performance gaming and efficient transaction rollups. Key features include atomic interoperability, the HyperGrid framework for optimistic rollup deployment on Solana, and the Rush ECS framework, which simplifies building onchain games and autonomous worlds. Sonic provides monetization tools for payments, settlements, and user acquisition tailored for gaming and applications. One such application is SonicX, a blockchain-based "tap-to-earn" gaming platform built on Solana's Sonic SVM. It integrates with TikTok, allowing users to log in with their TikTok account to participate in gameplay and earn rewards. The platform has reported a user base exceeding two million players.

Sonic SVM was created by Mirror World Labs, and its founding team consists of CEO Chris Zhu, CPO Alan Zhu, and CTO Jonathan Bakebwa. In June, the project announced the completion of a $12 million Series A round, in addition to a previously completed $4 million Seed round. Investors include BITKRAFT, Galaxy Interactive, Big Brain Holdings, Sky9 Capital, OKX Ventures, and others.

Website / X (Twitter) / Discord

SONIC Tokenomics

On December 31, the SONIC token was introduced as the main utility token for Sonic SVM. It is designed to power applications within the Sonic SVM ecosystem and other SVMs utilizing the HyperGrid Framework. The total supply of SONIC tokens is set at 2.4 billion, with allocations specifically designed to support the ecosystem’s development and encourage sustained participation.

Allocations

• Ecosystem & Community (30%): 720 million tokens allocated for initiatives that promote ecosystem development and community engagement. These tokens are distributed gradually to foster long-term participation and innovation within the Sonic SVM ecosystem. Additionally, it includes grants for game studios and dApp developers building within the ecosystem.
• Sonic HyperGrid Rewards (20%): 480 million tokens allocated to incentivize validator participation. Half of this allocation will go to validators that secure the Sonic SVM network, with the remainder going to observer nodes that monitor the network.
• Foundation (20%): 480 million tokens retained by the foundation to support the project’s ongoing development, partnerships, and strategic growth initiatives. This also includes team members and advisors.
• Investors (15%): 360 million tokens were distributed to investors as part of the funding rounds, reflecting their financial support for the project.
• Early Supporters (8%): 192 million tokens allocated to contributors and supporters who played a role in the early stages of the project’s development.
• Initial Claims (7%): 168 million tokens allocated for early distribution to stakeholders and contributors to ensure initial liquidity and engagement. This includes Sonic AVS delegators, HyperFuse Node holders, Odyssey participants, SonicX users, World Store Points holders, and Mirror NFT holders.

15% of the total token supply was circulating at TGE, coming from the “Initial Claim” and “Ecosystem” allocations. The “Investors” and “Early Supporters” allocations are both subject to a 12-month cliff followed by a 24-month linear vesting period. The other allocation subject to a vesting period is the “Foundation” allocation, which is an 18-month cliff followed by a 36-month linear vesting period. As for the “Ecosystem” and “HyperGrid Rewards” allocations, there is no defined vesting period but neither allocation is fully vested as of writing.

Utility

The SONIC token has several core features, giving utility to tokenholders:

Medium of Exchange

SONIC serves as the primary currency for transactions within the Sonic SVM ecosystem, facilitating payments for in-game assets, services, and other applications. This ensures seamless economic activity across the platform.

Staking

Tokenholders can stake SONIC to contribute to the ecosystem. By staking, users can access upcoming initiatives and earn rewards. As of writing, nearly 21.1 million SONIC has been staked, earning a maximum APR of 21.27%. Additionally, once the Sonic SVM network is live, users will also be able to stake SONIC to support network validation. Stakers will be able to assign their tokens to validators, earning rewards in return.

Staking Rewards

Stakers will be rewarded in SONIC for their participation in securing the network, incentivizing long-term token holding and active participation.

Governance

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

Token Generation Event (TGE)

The SONIC token went live on Jan. 7, 2025. Prior to going live, on January 3, users could check if they were eligible for the initial claim. Eligible users included Sonic AVS Delegators, Node Holders, Odyssey Participants, SonicX Users, World Store Points Holders, and Mirror NFT Holders. Eligible users had two options for claiming:

1. Claim the full airdrop amount immediately.
2. Claim 60%, Vest the rest over a 6-month period, starting 6 months after TGE, for a 140% bonus.

Furthermore, on the same day, the SONIC Alpha Vault was announced. This collaborative initiative, launched by Sonic SVM, Live Bonk, and Meteora, ensured fair and proportional token distribution without front-running. The vault offered 4,500,000 SONIC tokens through a pro-rata distribution model with no vesting requirements. The Alpha Vault opened to allowlist participants on January 5 and concluded with the TGE.

On launch day, liquidity for SONIC was supported on both decentralized exchanges (Raydium and Meteora) and centralized exchanges (OKX, Bybit, KuCoin, Bitget, Upbit, Gate, Mexc, Backpack, Trubit, Hashkey, BingX, etc.). As of writing, SONIC’s fully distributed value is $1.94 billion, making it the 9th most valuable L2 token by FDV. Additionally, SONIC is the only Solana-based L2 token within the top 10, as it was the first one to go live. Furthermore, 42,700 wallets are holding SONIC as of writing.

Roadmap

Sonic SVM’s roadmap outlines three progressive phases, each building toward the development and expansion of its ecosystem. The phased approach highlights key milestones from the initial network setup to ecosystem-wide scaling, emphasizing technical development and community engagement.

Phase 1: Network Genesis (Q4’24 - Q1’25)

The Network Genesis phase focuses on establishing Sonic SVM's foundational infrastructure and initiating key partnerships. During this phase, the HyperGrid Shared State Network will be launched, enabling the creation of interconnected SVM networks that promote seamless interoperability. Additionally, a decentralized node collective, called HyperFuse, is deployed to ensure the security and integrity of HyperGrid operations. This phase culminates with the official genesis of the Sonic SVM network.

Phase 2: Mainnet Alpha Launch (Q1’25)

The Mainnet Alpha Launch marks the transition from testnet to mainnet. The Mainnet-Alpha deployment introduces key services, including bridges, DEXs, oracles, and NFT programs. This phase also sees the launch of Android and iOS apps for SonicX. The Sonic Bridge will also support asset transfers for tokens such as SOL, sSOL, sonicSOL, and stablecoins like USDC and USDT. Furthermore, all HSSN validators are activated to secure and operate the network effectively.

Phase 3: Ecosystem Expansion (Q2’25)

The final phase focuses on scaling the Sonic SVM platform to accommodate a broader range of developers and users. This phase includes the integration of new Sonic Virtual Machines (SVMs) via the HyperGrid Optimistic Rollup Stack. The release of Sonic Grid V2 on testnet, followed by its mainnet deployment, will also occur. Additionally, SONIC staking programs are introduced, allowing holders to stake and delegate their tokens to HSSN validators for rewards, with a slashing mechanism to ensure network security. Finally, the RUSH ECS framework will be expanded to support new SDK clients and enable more onchain games and use cases.

Smart Agent Hub with Injective

One such example of ecosystem expansion is Sonic SVM’s partnership with Injective. Sonic SVM and Injective have collaborated to develop a cross-chain Smart Agent Hub, enabling automated and decentralized transactions across multiple blockchain networks. The hub utilizes Sonic's protocol for programmable asset transfers and Injective's infrastructure for interoperability. It will be launched as an SVM using the HyperGrid framework. This collaboration aims to streamline cross-chain operations and enhance the efficiency of decentralized AI applications.

Closing Summary

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

The introduction of the SONIC token as the ecosystem’s utility token ensures economic functionality and incentivized participation, with staking, governance, and developer rewards playing critical roles. The thoughtful tokenomics structure, combined with a well-executed TGE, reflects Sonic SVM’s strategic approach to fostering adoption and liquidity. With 15% of the token supply circulating at launch and liquidity supported across major decentralized and centralized exchanges, Sonic SVM has positioned itself as the first Solana-based L2 in the top 10 by FDV.

Sonic SVM’s phased roadmap outlines clear milestones, from foundational network genesis to ecosystem-wide scaling and cross-chain integration. Strategic collaborations, such as the partnership with Injective to develop a Smart Agent Hub, further demonstrate its commitment to innovation. Sonic SVM is poised to play a leading role in shaping the future of blockchain gaming and decentralized applications.