Some details about the FTM and S token conversion that you need to know

Written by: Yu Zhongkuang Shui in the Rain

1/ Sonic is a new high-performance Layer1 (you can see the Sonic performance mentioned by Fantom in its promotion, but just take a look, if there are no users and developers, it will still be a ghost chain). The launch of Sonic does not affect the Fantom Opera chain. However, obviously, the future focus of the Fantom Foundation will be on Sonic.

2/ $S is the native token of Sonic Network, which can be exchanged 1:1 bidirectionally with $FTM at TGE for a period of six months. The Fantom Foundation will refer to Sonic’s cross-chain bridges with other chains as Layer2 cross-chain bridges (This will be a new layer-1 chain with a native layer-2 bridge connected to Ethereum and beyond).

3/ Airdrop

In a tweet, Fantom mentioned that there will be 190M $FTM airdropped to users.

How to operate?

In the second proposal of Sonic, it is mentioned that it is hoped to incentivize Fantom Opera users and new users of Sonic through airdrops. The airdrop points activity is expected to last for more than 6 months. The airdrop aims to incentivize the activities, application revenue, and gas fee income of the Opera and Sonic ecosystems to drive the rise of TVL.

Could look like（LPs are definitely the preferred airdrop recipients）:

The official will launch a web page to help users check their current point count. In addition, the official will counter the witch.

4/ Token Burning (subject to final results, what I am now retelling is the content of the proposal)

Token burning will be reflected in the airdrop distribution.

Roughly speaking, the airdrop will be linearly unlocked (25% will be released at the beginning), and users may be able to accelerate this process through on-chain activities. Those who claim the airdrop in advance will be penalized (part of the airdrop rewards will be destroyed, and there is a coefficient here). Then, the official team will collaborate with PaintSwap to create an fNFT market, allowing users to trade the unlocked $S airdrop NFTs.

Here, let me explain separately the remaining 75% $S release rule (non-linear unlocking in 270 days):

For example, Andrew received an Airdrop of 1,000 $S. After receiving 250 $S immediately and waiting for 90 days, he decided to claim the remaining Airdrop. At this point, he can claim 249.75 $S (33.3% of the remaining 750 $S) and 500.25 $S (66.7% of the remaining 750 $S) will be burned.

It’s not linear unlocking. The proportion of tokens that can be claimed depends on the waiting time of the user.

5/ Token Inflation

After Sonic is launched for 6 months, the official will mint a portion of $S tokens to provide funding for subsequent marketing, ecosystem development, and partnerships. The official will ensure that 100% of $S is used for Sonic’s ecological development, and any unused $S will be destroyed.

6/ Summary

Unlike the previous direct money distribution method like Avalanche Rush, project teams have learned how to PUA users. Sonic is also the same. If we assume that the intention of Fantom people is to develop this ecosystem and attract users through airdrops, then the ecosystem needs to provide sufficient incentives to users, at least in the first 6 months. It is worth mentioning that, unlike airdrops from other protocols, the total value of 190M $FTM fluctuates with its price at any time. Therefore, the higher the price of $FTM, the more attractive it is for farmers to cultivate.

All information comes from here ⬇️