- Sonic governance earlier this year approved up to $50 million of $S to seed a potential US-listed ETF as part of its push into regulated U.S. markets.
- Execution was paused after market conditions worsened and $S fell in price; “no tokens were minted” under the authorization.
- Sonic Labs set strict conditions for any future minting: $S must trade above $0.50, a maximum of 100 million tokens may be issued, and total issuance is capped at $50 million.
- Tokens allocated to seed the ETF would be locked inside the product, not enter open-market circulation, and therefore would not increase liquid supply or directly add sell pressure.
- Sonic says the US-listed ETF remains strategically important for institutional access and that any future steps will follow governance and clear communication.
Earlier this year, governance for Sonic approved an authorization to mint up to $50 million worth of $S to seed a potential US-listed ETF as part of the project’s expansion into regulated U.S. markets. The move was intended to provide a compliant on-ramp for institutional investors.
Execution was expected soon after approval, but market conditions deteriorated and $S fell sharply in price. As a result, Sonic Labs paused the plan and stated that “no tokens were minted” under the authorization to avoid issuing supply at unsuitable price levels.
Sonic Labs said pausing preserved flexibility and kept the action aligned with the original governance intent. At current prices, minting the full $50 million allocation would require issuing more than 600 million additional $S, which the team said it is not pursuing.
The team outlined updated execution conditions: minting will occur only if $S trades above $0.50 (with a maximum of 100 million tokens); total issuance remains capped at $50 million; and the preference is to issue fewer tokens at higher prices. Sonic Labs added that there will be no execution outside these parameters.
Seeding an ETF means placing tokens into the fund to provide initial liquidity; those tokens remain locked inside the product and do not enter the open market. Sonic emphasized that such locked tokens would not increase liquid supply or create additional sell pressure.
Sonic reiterated that a US-listed ETF still offers strategic value by widening institutional access. Any future execution, adjustment, or refinement of the allocation will follow established governance processes and clear communication.
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