Question 1

What is S?

Accepted Answer

S is the native token of the Sonic network: users use it to pay on-chain transaction fees, holders can stake it to help secure the network, and it can also be used for governance. It is not an external token used only for trading, but the foundational asset Sonic uses to execute transactions and participate in protocol-layer mechanisms.

Question 2

What can S be used for?

Accepted Answer

S is used to pay Gas fees on Sonic. When users send transfers, deploy contracts, or call application contracts, they need to pay in S for the network resources consumed to validate and execute the transaction; therefore, the more complex a transaction is, or the greater the network’s demand for execution resources, the final required Gas cost may differ.

Question 3

What should be considered when staking S?

Accepted Answer

Staking S can support network security and participate in reward distribution; holders can delegate S to validators without running a node themselves. If they later wish to withdraw their stake, they must undergo a 14-day waiting period, so the assets cannot immediately return to a freely transferable state. Delegation does not eliminate validator risk. Sonic expressly notes that if the selected validator is penalized for misconduct or node configuration errors, delegated S may also be affected; choosing a validator requires considering both its operational reliability and penalty risk.

Question 4

How does S participate in governance?

Accepted Answer

Staking S can be used to participate in Sonic governance. Governance here means that stakers can express views on network-related matters; if token uses, network parameters, or economic arrangements need to change, this still depends on the relevant governance process rather than token ownership itself automatically changing the rules.

Question 5

How are S supply and new issuance arranged?

Accepted Answer

Sonic’s ongoing growth funding program provides that, beginning six months after mainnet launch, 47,625,000 S will be issued annually for six consecutive years for network growth and expansion. Each year’s newly issued tokens first enter a designated wallet and do not automatically enter circulation as soon as they are created. The arrangement also has an annual burn constraint: newly issued S not used for the program that year will be burned and cannot be retained for use in later years. For example, if only 5,000,000 S is used that year, the remaining 42,625,000 S will be burned. Thus, this mechanism affects the new supply actually retained under the program; it does not guarantee that every annual allocation will enter the market.

Question 6

Do validator rewards result in new S issuance?

Accepted Answer

During Sonic’s first four years after launch, block rewards are not paid through additional S issuance for this purpose, but through the remaining block-reward funds migrated from Fantom Opera, approximately 70 million tokens per year. As validators and stakers migrate to Sonic, Opera’s block rewards fall to zero, and the saved reward funds are redirected to Sonic validators. After the four-year period, Sonic plans to resume paying block rewards with newly issued S at an annual issuance rate of 1.75%. Therefore, validator rewards have different funding sources during the first four years and the subsequent phase: the former uses migrated funds, while the latter includes new token issuance.

Question 7

What is the relationship between FTM and S?

Accepted Answer

FTM is the token of the Fantom ecosystem before the Sonic migration, and the official upgrade arrangement allows FTM holders to upgrade to S at a 1:1 ratio. After the upgrade, S is the native token used by the Sonic network for Gas, staking, and governance. 1:1 refers to the correspondence in exchange quantity; it is not a guarantee of price, liquidity, or any market outcome. It describes the conversion ratio for migrating the old token to the new network’s native token.

Question 8

What is the purpose of S’s burn mechanisms?

Accepted Answer

Sonic documentation lists two types of burn arrangements related to newly issued S. The first is the growth-funding burn: in the six-year program, newly issued S unused in a given year is burned after that year. The second is the airdrop burn: 75% of the airdrop portion must undergo the full 270-day maturation period; if users choose not to wait for the full period, a corresponding portion of their S will be burned. The two mechanisms serve different purposes: the former prevents the growth plan from retaining unused annual allocations, while the latter links airdrop claim timing to burn outcomes. They reduce tokens that might otherwise have been retained under these specific arrangements; they do not mean that all S will be continuously burned.

Question 9

How do validators earn rewards?

Accepted Answer

Participants who run validators and stake a certain amount of S can receive block rewards and a portion of network fees paid by users. Network fees come from users paying Gas in S; the portion allocated to validators is distributed evenly across all staked S. Block rewards do not provide the same fixed rate to every participant. The official target is an annual reward rate of approximately 3.5% when 50% of all S is staked network-wide; if all S is staked, the example annual rate is 1.75%, and if only 25% is staked, the example is 7%. These rates show that rewards adjust with the network-wide staking ratio, while the network-fee portion also varies with actual Gas usage.

Question 10

What is the relationship between S and the Sonic network?

Accepted Answer

Sonic is an EVM-compatible Layer-1 blockchain, where EVM is the execution standard of the Ethereum Virtual Machine. S is the chain’s native token: contract calls require S to pay Gas, the network-security mechanism is based on S staking, and stakers can also participate in governance through it.

Question 11

Where do network fees paid with S go?

Accepted Answer

Network fees are generated when users pay Gas in S. Sonic documentation states that validators can receive a certain proportion of them, and that this portion is distributed evenly among all staked S; therefore, validators’ fee income depends both on Gas generated by actual network usage and the network-wide staking scale. This differs from block rewards: block rewards are funded by reward funds or subsequent new issuance, whereas network fees are paid by on-chain transactions that have occurred. Both may form part of validator returns, but their sources and conditions of change are not the same.

Question 12

What are the basic risks of holding and staking S?

Accepted Answer

Holding and staking S is not equivalent to a risk-free deposit. First, unstaking has a 14-day waiting period, during which the assets cannot be treated as immediately available; second, delegators may be affected by misconduct or configuration errors of their selected validator. In addition, rewards vary with the network-wide staking ratio and network fees and should not be regarded as fixed income. Staking determines a way to participate in security and reward mechanisms; it does not eliminate S’s own price volatility or validator operational risk.

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