Sonic (S, formerly FTM) has updated the terms and conditions of its ETF token allocation plan. Sonic Labs reminded users that a community vote had previously approved the allocation of up to $50 million worth of S tokens to ETFs eligible for listing in the United States.
However, the company postponed the implementation of the plan due to weak market conditions and a significant drop in the S price, and announced that no tokens would be minted in this process to avoid creating supply pressure.
The statement argued that implementing the original plan at current price levels would require the issuance of more than 600 million additional S tokens, which would deviate from the purpose of the governance proposal. Therefore, the old implementation model will not be adopted. Sonic Labs has defined new and clear terminology for the benefit of token holders.
Therefore, ETF allocations will only be made when the S price is above $0.50, and up to 100 million S tokens can be minted. The total allocation is strictly limited to $50 million, with higher prices favoring smaller amounts. It is clearly stated that no exceptions will be made to these conditions.
Sonic Labs also said that the S tokens used in the ETF will be locked in regulated products and will not enter the secondary market, so there will be no further selling pressure. The company said it views the ETF’s U.S. listing as a long-term strategic priority and aims to provide institutional investors with compliant sonic access, and maintained that future updates will be shared through a transparent communication and governance process.
*This is not investment advice.
