Fantom Foundation Commits $120 Million to Speed Up Project Migrations to Sonic
The Fantom Foundation, the driving force behind the decentralized network Fantom, has made a firm commitment to support the launch of Sonic, a new and faster network.
In a press release issued on June 20, the Fantom Foundation announced its plan to allocate approximately $120 million, equivalent to 200 million of its native Fantom tokens, from its treasury to facilitate the transition of projects to the Sonic network.
These funds will be used to identify and establish partnerships with top-tier developers and companies who can contribute to the growth and development of the Sonic network. This includes developers working on applications directly on the Fantom platform, developers focused on decentralized applications (DApps), and partners providing essential tools and services.
It is worth noting that these funds will be sourced from smart financial strategies implemented by Fantom network creator Andre Cronje, without any increase in the total token supply.
Sonic, which will introduce a new layer-1 solution alongside a built-in layer 2, aims to seamlessly integrate with the Ethereum network. This will bridge the gap between the two EVM-compatible networks, allowing users on the upcoming Sonic network to access Ethereum’s extensive ecosystem of decentralized applications, liquidity providers, and community.
The allocated funds will initially be directed towards strategic grants for existing applications within the Fantom ecosystem, with priority given to those that have shown a strong interest in leveraging the Sonic technology.
This commitment to support project migrations to Sonic is not the first time the Fantom Foundation has provided incentives. In May, the network set aside $6.5 million worth of its native tokens to incentivize developers, emphasizing the concept of “safer memecoins.” Additionally, in May 2023, the Fantom Opera network launched the “Gas Monetization Program,” which compensates eligible developers with 15% of the total gas fees generated by their applications.
Earlier this year, Fantom Network announced a 90% reduction in validator requirements, making it more accessible to run a Fantom node. The company believes in decentralization and aims to prevent a few validators from controlling the system.
As decentralized applications and blockchains have faced criticism for not living up to the ideals of decentralized finance (DeFi), the Fantom Foundation is positioning itself for the future of decentralized networks, emphasizing the importance of a truly decentralized and accessible ecosystem.