The Fantom Foundation, the force behind the Fantom platform, has made a significant financial commitment to support the launch of Sonic, a new ultra-fast network.
Announced on June 20, the Fantom Foundation is allocating up to 200 million Fantom (FTM) tokens, valued at approximately $120 million, to assist developers and companies in transitioning their projects to Sonic as part of the Sonic Labs Innovator Fund.
The funds will be utilized to identify and secure partners who can contribute to the development and expansion of the Sonic network. These partners will include developers creating apps directly on Fantom, developers of decentralized applications (DApps), and providers of essential tools and services.
Fantom attributes the accumulation of the FTM tokens to Andre Cronje’s treasury management. The allocations will initially focus on providing strategic grants to applications already within the Fantom ecosystem, with priority given to those who have demonstrated a strong interest in utilizing Sonic technology.
Following the creation of a new foundation to facilitate the launch of the Sonic Chain, Fantom’s Sonic Foundation will oversee Sonic’s governance, manage the network treasury, orchestrate partnerships, and develop the DApp ecosystem.
According to Fantom Foundation CEO Michael Kong and the development team, Sonic will feature a new layer-1 solution and a built-in layer 2 that directly bridges the Ethereum Virtual Machine-compatible network to Ethereum. Through the Sonic Chain’s architecture, users will reportedly be able to access Ethereum’s extensive ecosystem of decentralized applications, liquidity providers, and community.
This latest financial commitment follows previous initiatives by the Fantom Foundation, including backing the concept of “safer memecoins” by allocating $6.5 million worth of FTM tokens to reward developers. Additionally, in May 2023, the “Gas Monetization Program” was launched to pay developers the gas fees they generate from users, with eligible developers receiving 15% of the total gas fees generated by their apps.
Cointelegraph reached out to the Fantom team for further information on the Sonic Labs fund but has not yet received a response.
Fantom earmarks 120 million worth of FTM tokens for Sonic migration