- Sonic Labs CEO unveils new FeeM system linking rewards, burns, and real-world growth.
- U.S. expansion, with a New York office, strengthens policy and institutional engagement.
- Focus shifts from speed to fundamentals, driving value through true ecosystem utility.
Sonic Labs, the company behind the high-speed Sonic blockchain, is entering a new stage under its chief executive, Mitchell Demeter. In an update shared on X, Demeter outlined a long-term strategy aimed at transforming Sonic from a speed-focused network into a utility-driven ecosystem that delivers measurable and lasting value.
Since taking the helm six weeks ago, Demeter has worked closely with developers, validators, and partners to realign Sonic’s priorities. “This next phase is about more than performance,” he said. “It’s about turning that foundation into lasting value for builders, validators, and token holders.”
Sonic Labs earned industry attention last year for achieving a 720-millisecond transaction finality on its Ethereum Virtual Machine–compatible chain. Now, the goal is to translate that technical edge into real-world business outcomes and sustained ecosystem growth.
From Speed to Stability: Shifting Toward Fundamentals
Demeter emphasized that the blockchain industry is maturing. The previous cycle, he said, was driven by speculation. The next one will be defined by fundamentals, clear economics, and dependable execution.
Sonic’s financial position provides a strong base for this transition. The firm maintains a healthy treasury and faces no liquidity challenges, giving it the flexibility to pursue growth without relying on external financing. “The approach is to now operate with discipline, focus, and accountability,” Demeter noted.
A key part of the strategy is a new Fee Monetization (FeeM) model, a tiered structure designed to reward builders and validators while reinforcing deflationary tokenomics. Under this model, between 15% and 90% of transaction fees will go to builders, 10% will reward validators, and the remainder will be burned to permanently reduce token supply.
The proposal, which will be put to an on-chain governance vote, aims to align incentives across the ecosystem and ensure that network activity directly benefits all participants.
Institutional Expansion and Global Reach
Sonic Labs is also extending its footprint in the United States. The company will establish a New York office to anchor its institutional engagement, business development, and policy outreach. The move reflects a growing focus on building relationships with enterprises and regulators in key financial markets.
“After spending last week in New York, I was able to connect with partners and institutions on the ground. Being able to chat and collaborate with industry peers with the team reaffirmed that Sonic must have a strong presence in the United States,” Demeter said.
The new office will support Sonic Labs’ efforts to connect with traditional finance, including discussions around exchange-traded fund (ETF) collaborations and other market initiatives. Although the broader digital asset market has cooled, Demeter believes the groundwork being laid today will position Sonic favorably once institutional demand returns.
To strengthen communication and education, Sonic’s partner platform, GMSonic, is being reimagined as a global content and learning hub. It will highlight projects, showcase builders, and provide resources for developers looking to join the ecosystem.
Building a Circular Economy for Long-Term Value
Sonic Labs’ business model is centered on creating a self-sustaining economy that benefits all participants:
- Builders earn directly from the network activity they generate.
- Validators are rewarded for securing the chain.
- Token holders gain from reduced supply through ongoing burns.
This alignment of incentives, Demeter declared, ensures that Sonic’s growth translates into real value creation rather than speculative gains.
The company will also increase its participation in major blockchain conferences and continue to host the annual Sonic Global Summit, which brings together developers, investors, and institutional partners from around the world.
Sonic Labs: Strength Through Utility and Execution
Sonic Labs’ rebranding earlier this year led to an 80% price decline, but the CEO stressed that short-term volatility does not define the project’s health. “Price alone isn’t the goal,” he said. “It’s the outcome of consistent vision, solid fundamentals, and credible execution which builds a foundation for long term growth.”
The focus now shifts from being the fastest chain to becoming the most functional and developer-friendly one. Upcoming Sonic Improvement Proposals (SIPs) will introduce upgrades that enhance interoperability, usability, and business integration.
Demeter closed by reaffirming that Sonic’s mission is rooted in long-term growth, not market noise. “Our treasury is healthy, operations are sound, and we’re now executing from a place of strength,” he said. “…I’m confident we’ll build something lasting…one block, one builder, one transaction at a time.”
