Developers Halt New Token Issuance for an Altcoin: Price Rises in Response

Sonic Labs’ native token, S, gained 17.7% after the company decided not to implement its annual token inflation plan this year.

Sonic announced that, within the current token economy, it is projected that 47,625,000 S tokens will be minted annually to finance the network’s growth. The first allocation was made on June 18, 2025, and it was clarified that no minting took place this year.

A graph showing the increase in the price of S.

The project team reported that work is ongoing to completely eliminate inflation in the S supply. However, they added that the most important issue to be resolved in this process is validator rewards. Sonic Labs stated that they are working on how to fund validators in order to maintain network security.

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The Sonic ecosystem is also closely associated with Andre Cronje, a leading figure in the DeFi world. Cronje gained significant community support with the DeFi projects he developed in the past and was referred to as the “father of DeFi.” Cronje, who played a significant role in Fantom’s rise, caused sharp fluctuations in the FTM price when he left the project and later returned.

Following Fantom’s rebranding as Sonic, the S token experienced significant value losses, and Cronje’s departure from Sonic further strained investor confidence.

*This is not investment advice.

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