The Fantom Foundation, the organization behind the decentralized network known as Fantom, has made a financial commitment to support the launch of Sonic, a faster network. On June 20, the foundation announced that it will allocate up to 200 million of its native Fantom tokens (FTM), valued at around $120 million, to assist developers and companies in transitioning their projects to Sonic.
These funds will be used to seek out and secure top-tier partners who can contribute to the development and growth of the Sonic network. These partners may include developers building apps directly on Fantom, developers creating decentralized apps (DApps), and partners offering essential tools and services.
It’s important to note that this financial commitment is made possible through smart financial strategies led by Andre Cronje, the creator of the Fantom network, without increasing the total number of tokens in circulation.
Initially, the focus of these allocated funds will be on providing strategic grants to applications already within the Fantom ecosystem, with priority given to those who have shown a strong interest in utilizing Sonic technology.
To facilitate the launch of Sonic, the Fantom Foundation has established the Sonic Foundation. This foundation will oversee Sonic’s governance, manage the network’s treasury, foster partnerships, and develop the DApp ecosystem.
According to Michael Kong, CEO of the Fantom Foundation, and the Fantom development team, Sonic will feature a new layer-1 solution and a built-in layer 2 that will directly connect the EVM-compatible network to the Ethereum network. This architecture will allow users of the Sonic network to tap into Ethereum’s extensive ecosystem of decentralized applications, liquidity providers, and community.
This commitment to supporting Sonic is not the first time the Fantom Foundation has provided incentives. In May, the foundation set aside $6.5 million worth of FTM tokens to reward developers as part of their initiative to promote “safer memecoins.” Additionally, the foundation launched the Gas Monetization Program in May 2023, which pays developers 15% of the total gas fees generated by their apps.
Cointelegraph has reached out to the Fantom network team for more information on the Sonic Labs fund but has not received any feedback at the time of publication.
Source: Fantom Foundation