Sonic updates ETF token allocation plan: to be executed only when S price is above $0.5, with issuance capped at $50 million

Odaily reported that Sonic Labs has released an announcement updating its ETF token allocation execution plan. Previously, the Sonic community had passed a governance proposal authorizing up to $50 million worth of S tokens for potential US-listed ETFs to facilitate entry into the regulated US market. However, after the proposal was approved, due to the overall market downturn and a significant decline in the price of S, Sonic Labs decided to postpone execution and did not mint any related tokens during this period to avoid increasing supply at unfavorable price levels.

The announcement stated that if the original plan were executed at current prices, it would require the issuance of over 600 million additional S tokens, which would clearly deviate from the original intent of the governance proposal. Therefore, this plan will not be adopted. To better align with the interests of token holders, Sonic Labs has clarified new execution constraints: ETF quotas will only be minted when the price of S is above $0.5, with a maximum of 100 million tokens; the total token value is strictly capped at $50 million, with a preference for issuing fewer tokens at higher price levels; any execution deviating from these conditions will not occur.

Sonic Labs also emphasized that S tokens used for ETFs will be locked within regulated products and will not enter secondary market circulation, nor will they increase market selling pressure. The team stated that US-listed ETFs remain a long-term strategic focus, aiming to provide compliant Sonic exposure for institutional investors, and any future adjustments will continue to be advanced through clear communication and governance processes.