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The Fantom Opera network upgrade of Q2 2024 kicked off a pivotal progression for the original Fantom network. Initially launched to solve the notorious blockchain trilemma—balancing decentralization, security, and scalability—Fantom has been widely adopted for its consensus mechanism, Lachesis, which allows the network to process transactions asynchronously and achieve high throughput with finality in under one second. The Opera upgrade was the first step of a much grander transition.

Now, Q4 2024 will officially launch an entirely new blockchain and token, the Sonic chain and S token (Providing a 1:1 swap for FTM holders at genesis). Together, these two will create a high-performance Layer-1 blockchain with the Fantom community, featuring scalable architecture, sub-second finality, Ethereum connectivity, low transaction costs, airdrops, and more. The Sonic chain will deliver cutting-edge infrastructure designed to meet the growing demands of DeFi, cross-chain consumer dApps, NFTs, and other high-frequency applications, helping kick off a modernized Sonic ecosystem with top crypto brands like Chainlink, Pyth, Alchemy, and more.

Why Sonic?

The existing Fantom Opera network has proven highly efficient, but as blockchain demands increase, its limitations have become more apparent. Rather than simply enhancing the current network, the decision to launch the new Sonic blockchain introduced a more robust solution capable of handling the exponential growth in demand for cross-chain dApps, DeFi, NFTs, and beyond. This entirely new chain will deliver a host of improvements explicitly designed to address network congestion, reduce costs for node operators, and increase transaction throughput.

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Sonic addresses Opera's limitations by introducing a comprehensive set of architectural advancements that significantly enhance Fantom’s throughput, efficiency, and resilience.

First, Sonic increases the network's transaction processing capacity and optimizes its operational performance without relying on more complex scaling solutions like sharding or L2 rollups. By implementing a shard-free, single-layer architecture, Sonic maintains the existing network's simplicity and robustness while pushing its scalability to new levels.

Unlike many Layer-1 solutions that rely on complex scaling solutions like sharding or Layer-2 rollups, Sonic maintains a shard-free, single-layer architecture that prioritizes simplicity and resilience, unlocking powerful benefits for developers and users alike. This new blockchain positions Fantom to compete directly with high-performance Layer-1 solutions like Solana and Avalanche.

The migration to Sonic involves several phases designed to ensure a smooth transition for the existing Fantom community:

1. Token Swap and Governance: Existing FTM token holders will participate in a 1:1 token swap to exchange their FTM tokens for the newly introduced S tokens, which will power the Sonic network.  This has been officially passed through 4 strategic governance votes within the Fantom community, all passing their respective votes >90% approval. 
2. Partnerships and Incentives: The chain is kicking off its partnerships with an Innovator Fund worth more than 100m USD today. The Fantom Foundation has secured key partnerships to support the launch of Sonic, including collaborations with major Web2 and Web3 entities like Alchemy, Gelato, oracles Pyth and Chainlink, and more. In addition, the foundation has allocated millions of FTM from its treasury to fund a variety of initiatives—ranging from developer grants and business development to liquidity incentives for early adopters of the Sonic ecosystem. 
3. Airdrop and Developer Programs: As part of the launch strategy, a portion of the newly minted S tokens will be distributed through airdrops, rewarding both existing users of the Fantom Opera network and focusing on new participants. As of today, this airdrop is worth over 110m USD and introduces a unique linear burn and vesting mechanism to reduce the effect of supply. This airdrop will also coincide with the launch of several developer programs, including grants, hackathons, and educational initiatives under the Sonic University banner, to foster innovation and grow the developer community on the new platform.

The Fantom-to-Sonic transition comes at a time when the blockchain industry is witnessing a wave of Layer-1 network upgrades. From Ethereum’s shift to proof-of-stake with Ethereum 2.0 to the introduction of new token models in networks like Polygon 2.0, major blockchain ecosystems are recalibrating their technical foundations better to accommodate the demands of decentralized applications and services. Sonic’s emphasis on throughput, combined with its streamlined architecture, positions Fantom as a formidable competitor in this race for scalability and performance, setting the stage for Fantom’s evolution into a next-generation blockchain capable of supporting a wide array of use cases—from DeFi to gaming to Internet of Things (IoT).

Technological Changes

Sonic Virtual Machine (SVM)

Sonic’s virtual machine (VM) is a key component of the Sonic blockchain, facilitating elevated efficiency, performance, and compatibility with the wider DeFi ecosystem and existing EVM products. At its core, the VM is engineered to enhance the speed at which smart contracts are executed substantially. Sonic’s VM is distinctive because it can convert EVM bytecode into a more optimized format without requiring extensive rewrites of existing smart contracts. This means that developers accustomed to building on Ethereum can migrate their dApps to Sonic effortlessly, ensuring that the network attracts a wide range of Ethereum-based projects.

In practice, Sonic’s VM removes performance bottlenecks related to contract execution by using more efficient resource management and a simplified virtual execution environment. It retains compatibility with Ethereum-based Solidity contracts, allowing developers to deploy without making drastic changes to their codebase. This strategic compatibility reduces friction, making Sonic a more attractive platform for DeFi applications and other projects that depend on high transaction throughput.

Sonic Data Storage

Sonic's new StateDB storage solution features live pruning, dynamically reducing the blockchain's historical data footprint and addressing the inefficiencies and operational costs associated with an ever-growing ledger. This process ensures the blockchain remains lean and scalable, preventing data bloat that can slow down performance as the network expands.

Live pruning operates by dividing the database into two components: the LiveDB, which stores the current state of the Sonic network, and the ArchiveDB, which holds the historical data. Validators only need to maintain the LiveDB, while archive nodes are responsible for syncing and storing both the current and historical states.

This dual-database architecture significantly improves network synchronization speeds by reducing the storage burden on validators. As a result, this storage solution enhances the blockchain’s overall performance, enabling faster transaction processing, more efficient data management, and an improved user experience as the network scales to accommodate more users and transactions.

Finality

Sonic introduces significant enhancements to transaction finality, enabling near-instantaneous confirmation times. Time to finality refers to how long it takes for a transaction to become irreversible on the blockchain. In contrast to probabilistic finality models used by networks like Bitcoin and Ethereum, which require multiple blocks to ensure transaction immutability (about an hour for Bitcoin and two minutes for Ethereum), Sonic achieves deterministic finality in under one second.

This is made possible through Sonic’s consensus mechanism, which eliminates the need for the longest chain rule and chain reorganizations. Instead of relying on a single computer to produce blocks sequentially, transactions on Sonic are confirmed once a majority of validators reach consensus, ensuring there is no chance of conflicting blocks or delays. As a result, once a block is added, it is immediately final and irreversible, providing superior security, efficiency, and user experience compared to traditional blockchain finality models​.

Sonic Gateway: A Bridge to Ethereum

Sonic is an L1 chain that leverages a bespoke L2 bridge (Gateway) to connect seamlessly with Ethereum, creating a form of hybrid L1-L2 that combines the high-speed, low-cost benefits of L1 with the security and liquidity access of Ethereum's L2. It also enables Sonic to connect to the ~$35B in TVL currently sitting in Ethereum L2s/rollups.

L2 bridges play a crucial role in modern blockchain ecosystems by addressing two major limitations of L1 chains: scalability and cost. Ethereum, for example, is renowned for its security and vast network of users and liquidity, but it suffers from high transaction fees and slower processing times due to its L1 architecture. This is where L2 solutions come in, designed to offload transaction processing from the L1 mainnet, significantly increasing throughput while reducing costs.

L2 bridges achieve this by handling the bulk of transactions off-chain and periodically settling them on Ethereum's L1. This method reduces congestion and maintains Ethereum's robust security since the final transaction records are anchored back to the main network. Bridges like these connect assets and smart contracts between chains, enabling cross-chain interoperability and greater network synergy without compromising security.

How Layer 2 Bridges Work in Connecting to Ethereum

L2 bridges function by creating a trusted link between Ethereum and an external chain (in this case, Sonic). They allow assets and data to move between the two networks without risking double-spending or trustless transactions. When a user or application interacts with Ethereum through an L2 bridge, the process is as follows:

1. Transaction Aggregation: The L2 collects multiple transactions from users and processes them in batches. This reduces the load on the Ethereum mainnet and drastically cuts down on gas fees.
2. Settlement on Ethereum: Once the transactions are processed, the results are sent back to Ethereum, where the Layer 1 network finalizes them. This ensures that the integrity and security of the Ethereum blockchain are upheld while benefiting from L2 scalability.
3. Liquidity and Security: The L2 bridge also allows native ETH and ERC-20 tokens to be moved across chains, granting Sonic access to Ethereum’s deep liquidity while leveraging Ethereum’s mature security model.

Sonic’s Gateway is a decentralized and trustless bridge connecting Ethereum and Sonic utilizing Sonic's validator network. The Gateway ensures secure ERC-20 token transfers while allowing users to maintain complete control over their assets. Transfers from Ethereum to Sonic take up to 10 minutes, and from Sonic to Ethereum, up to 1 hour. A built-in fail-safe lets users recover their assets on Ethereum if the Gateway is unresponsive for 14 days. Unlike layer-2 solutions that require a 7-day challenge period for finalization, Sonic Gateway provides quicker and more secure transfers without relying on multi-signature bridge protection.

By integrating this L2 bridge to Ethereum, Sonic provides direct access to native ETH and other assets on Ethereum without the need for costly and time-consuming third-party intermediaries. This connection empowers Sonic to tap into Ethereum’s liquidity pools, DeFi protocols, and user base while maintaining the low fees and high throughput characteristic of Layer 1 platforms.

Parallel Execution

Parallel execution is an emerging advancement in blockchain technology that is being explored for its potential to enhance network efficiency, speed, and scalability. By enabling multiple transactions to be processed simultaneously rather than sequentially, parallel execution could significantly improve blockchain performance, particularly as demand for dApps grows. This could result in smoother interactions, reduced latency, and the ability to handle higher throughput, which are key considerations for any blockchain network.

While Sonic Labs is actively exploring the potential of parallel execution for the Sonic blockchain, it is not yet a confirmed feature of the Q4 2024 launch. Instead, it represents one of several possible future enhancements aimed at pushing the boundaries of blockchain scalability. Sonic Labs is assessing the feasibility of integrating parallel execution into its FVM to increase overall TPS and optimize smart contract execution.

In the broader blockchain space, parallel execution is also being explored by other projects due to its scalability benefits. Many blockchains are experimenting with strategies such as state access and optimistic execution methods to parallelize transactions, although these approaches come with their own complexities. For Sonic, parallel execution remains under consideration as a long-term solution to further enhance scalability, but it is not the primary focus of the upcoming Sonic chain launch.

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Why Parallel Execution Matters in Blockchain

The ability to process transactions in parallel could offer considerable advantages for blockchain networks looking to scale. Traditional blockchains like Bitcoin and Ethereum process transactions sequentially, limiting their speed and scalability. Parallel execution, by contrast, allows transactions to be processed simultaneously, unlocking higher TPS and better resource utilization. However, these benefits are accompanied by challenges, particularly in how blockchain states are accessed and managed.

For Sonic, exploring parallel execution aligns with the network’s broader goals of scalability and efficiency. Still, the current focus remains on launching the new chain with its existing set of architectural advancements, such as the new database storage and consensus optimization. Parallel execution may play a role in future upgrades as Sonic Labs continues to push the boundaries of blockchain performance.

Sonic Testnet Performance

With the Sonic chain currently not live, we must rely primarily on testnet performance metrics to best establish expectations. Currently, on Fantom mainnet (i.e., Opera), the network averages approximately 2.5 TPS with a block confirmation time of 2.7 seconds. This level of performance puts Sonic quite far behind its main competitors, with even Ethereum mainnet typically averaging at least 5x higher TPS.

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So far, the Sonic testnet has averaged a significantly improved TPS of 212 and a time to finality of only 0.56 seconds, well under the stated sub-second finality goal. These metrics are against approximately 18 million test transactions per day (versus the 533 million daily on Fantom mainnet). So, while improved, it remains to be seen how close to that 212 TPS Sonic can truly get. It is also worth noting that current testing is nowhere near that documented a theoretical maximum throughput of 2,050 TPS originally found in the closed testnet of Sonic.

What is impressive is that the composition of these transactions was diverse, with 10% comprising token transfers, ~65% involving ERC20 mints and transfers, and the remainder attributed to decentralized exchange (DEX) swaps. So, there is reason to believe that with continuous improvements during testnet, Sonic could achieve anywhere from a 100x to 1000x throughput improvement. Thus, Sonic appears to be on pace to create significant efficiency improvements for Fantom overall.

Tokenomics and Airdrop

The Sonic chain introduces a meticulously designed tokenomics framework, which is crucial for driving its ecosystem’s growth and sustainability. As Sonic Labs rebrands and transitions from the Fantom Opera network to the Sonic chain, the role of the new S token—set to replace the existing FTM token—becomes central to Sonic’s future. This transition is conducted at a 1:1 ratio between the existing FTM token and the new S token.

This transition, initiated in August 2024, allows the Fantom community to seamlessly switch from the older Fantom Opera network to the high-performance Sonic chain. At its core, the migration is more than a rebranding effort; it is a strategic recalibration designed to bolster network scalability, liquidity, and user participation. The total supply of 3.175 billion S tokens will exactly match the current FTM supply, ensuring a smooth exchange for holders. The S token will become the backbone of the Sonic ecosystem, serving multiple critical roles such as transaction fees, staking, validator operations, and governance.

Initially, token holders will be able to swap between FTM and S tokens in both directions. However, after a transitional period determined by community governance, the migration will become one-way, locking users into the Sonic chain for future participation.

Network Fees, Future Minting, and Burn Mechanism

Sonic’s economic model is designed to balance immediate utility with long-term value preservation. Network fees generated through user interactions will provide additional earnings for validators, distributed proportionately among staked tokens. To support the ongoing growth of the network, new S tokens will be minted six months after the network's launch. This minting process is carefully calibrated, with 1.5% of the total supply (47,625,000 S tokens) to be minted annually over six years. To mitigate inflation and protect token value, any unused tokens from this initiative will be burned, ensuring that all newly minted tokens directly contribute to network expansion and ecosystem development.

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A critical aspect of the tokenomics associated with the new S token is the burn mechanism. Token burning involves permanently removing tokens from circulation, typically by destroying them through a smart contract or transferring them to an inaccessible wallet. The primary goal of this practice is to reduce the overall token supply, thereby potentially increasing the token’s price, assuming demand remains constant. However, this mechanism has both benefits and drawbacks that must be carefully considered.

Airdrop and Incentives

Airdrop Program

To promote widespread adoption and participation in the Sonic ecosystem, 6% of the total S token supply is allocated to an airdrop, scheduled to begin six months after the network's launch. The primary goal of this airdrop is to drive user engagement, liquidity, and participation across both the Sonic and legacy Opera platforms.

To enhance the flexibility and utility of the airdrop, the S tokens will be distributed as ERC-1155 NFT tokens (fNFTs). These fNFTs, representing S tokens, can be traded on secondary marketplaces such as PaintSwap, providing recipients with additional liquidity options. This structure not only increases the flexibility of the airdrop but also promotes broader user interaction with the Sonic ecosystem.

Recipients of the airdrop will have immediate access to 25% of their allocated S tokens upon claiming their fNFT, while the remaining 75% will vest over a specified period. The vesting model encourages long-term engagement and reduces the likelihood of short-term speculation. Participants can opt for faster vesting, though this will result in fewer unlocked tokens. Any unvested tokens will be burned to maintain supply control and mitigate inflationary risks.

The airdrop is strategically tailored to boost network activity, increase application revenue, and generate gas fees within both Sonic and Opera. Key user groups targeted by this airdrop include liquidity providers, validators, and bridge users, ensuring that those who have historically contributed to network growth are rewarded while also attracting new participants to the Sonic chain.

In addition to rewarding existing contributors, the airdrop is structured to attract new users and drive Total Value Locked (TVL), transaction volume, and the development of early applications on Sonic. Tailored incentives will be offered to key contributors, including liquidity providers, staking participants, validators, verified contract deployers, and other strategic users.

The vesting schedule has been carefully crafted to align with the network’s growth trajectory and liquidity management needs. The primary considerations in this model include:

• Growth Alignment: Ensuring that the token supply matches demand at launch to prevent significant price fluctuations.
• Liquidity Management: Coordinating vesting periods with market liquidity to stabilize token prices and reduce the impact of large buy or sell orders.
• Investor Considerations: Balancing the vesting periods for early investors and fundraising tranches to minimize sell pressure from those seeking quick returns.

This comprehensive approach to airdrop incentives ensures the Sonic ecosystem fosters sustained user engagement while maintaining a balanced token supply and protecting long-term value.

Validator Rewards

A key component of the Sonic network’s migration strategy involves the reallocation of staking rewards from the existing FTM validators on the Opera network to the new Sonic network. All rewards earned by validators and stakers on Opera will be migrated to Sonic, with a target block reward rate of 3.5% as part of this transition. This migration is designed to ensure the Sonic network operates sustainably without the need for inflation during its first four years, leveraging the remaining FTM rewards to maintain this annual percentage yield (APR).

During this initial period, no new S tokens will be minted, which is crucial for preserving the value of the token while providing a stable foundation for validators and stakers. This approach aims to align the network’s reward structure with long-term stability, ensuring that participants continue to earn competitive returns while maintaining the integrity of the tokenomics.

To further optimize the staking process, the staking lock-up period has been reduced to a maximum of 14 days, with a seven-day un-delegation period. These changes are designed to improve liquidity for validators and stakers, making it easier for participants to move in and out of staking positions while still offering attractive returns. By targeting a 3.5% APR when approximately 50% of the network’s tokens are staked, Sonic ensures that its rewards system remains aligned with the network’s health and growth.

Liquid Staking

An exciting innovation within the validator rewards system is the introduction of Liquid Staking Tokens (LSTs). LSTs provide additional flexibility by allowing stakers to tokenize their staked assets, unlocking liquidity and new yield opportunities within Sonic’s DeFi ecosystem. This feature significantly reduces the opportunity costs traditionally associated with staking, enabling stakers to participate in other DeFi applications such as lending, borrowing, and liquidity provisioning, all while maintaining their staking rewards.

The migration to Sonic presents an opportunity to tap into a $750 million Liquid Staking Token ecosystem, capitalizing on the 48% staked supply seen on the Opera network. Historically, the restrictive terms of staking on Opera limited the growth of LSTs, which comprised less than 4% of the total staked supply. Sonic aims to overcome these barriers, positioning itself to capture a larger share of the DeFi market, much like Ethereum, where LSTs represent a substantial portion of the staked supply.

By making LSTs more accessible and improving staking liquidity, Sonic is poised to drive greater Total Value Locked (TVL) and increase validator participation, further enhancing the strength and flexibility of its network.

Where Does Sonic “Fit In” For this Cycle and the L1 Space?

The Sonic blockchain is a crucial new technology tailored at transitioning the Fantom ecosystem to a modernized, versatile hybrid L1-L2 network. With 100x the throughput capabilities of the original Fantom Opera network, Sonic’s performance and architecture makes it competitive in what is a highly contested market for user and developer acquisition. 

While Fantom Opera had previously struggled to accommodate high-demand, throughput-intensive applications, Sonic transforms the ecosystem into a scalable and flexible platform capable of supporting the next wave of DeFi, blockchain gaming, and high-frequency applications. Sonic's significance lies not only in its raw performance improvements but also in its seamless compatibility with Ethereum, a crucial factor in this multi-chain era.

In the upcoming cycle, where L1 networks are competing against increasingly powerful Layer 2 solutions, compatibility is paramount. Sonic’s integration of its VM ensures full compatibility with Ethereum’s ecosystem, allowing developers to port their Solidity-based applications without the complexity of rewriting code or adjusting to new architectures. This interoperability places Sonic in a unique position: it can capture value from Ethereum’s liquidity and dApp ecosystem while leveraging its own superior transaction speeds and cost efficiencies.

The key here is enabling the compatibility of native ETH and other ERC-20 tokens to be directly utilized on the Sonic chain. This helps to bootstrap all of these new applications and vastly improves the user experience of the Sonic ecosystem, reducing the barrier of entry substantially. Taking part in the monumental growth of the Ethereum L2 marketplace can make Sonic hyper-competitive versus other siloed L1s. 

In 2024, the L2 marketplace for Ethereum had expanded to over $20 billion in deposited value at its peak, significantly higher than the TVL of just about every other L1 blockchain combined:

Sonic vs. Leading L1s, L2s

Sonic's debut as a high-performance Layer 1 chain puts it in direct competition with established platforms like Solana, Avalanche, and emerging networks such as Sei V2. These networks have set high benchmarks for throughput, transaction costs, and ecosystem growth. However, Sonic’s unique blend of Ethereum compatibility and advanced architecture positions it as a strong challenger in this competitive landscape.

Solana and Avalanche have built their reputations on high transaction throughput. Solana, for example, is known for its ability to handle up to 3,000 TPS on average (with a max theoretical of 65,000 TPS), while Avalanche achieves a more modest but still impressive 95 TPS (though has achieved 143k TPS in testnet via its new HyperSDK). Sonic’s testnet, with over 2,000 TPS, positions it competitively with these platforms, particularly when compared to real-time performance.

Low transaction costs are a core value proposition for any L1 network. Solana and Avalanche have both built models around inexpensive transactions, with Solana's fees averaging fractions of a cent and Avalanche maintaining similarly low costs. Sonic matches this efficiency by offering sub-penny transaction fees but with the added advantage of avoiding the costly L2 scaling methods employed by other Ethereum-compatible networks. In Sonic, users can access Ethereum-like functionality with far lower costs than Ethereum’s L1 mainnet while retaining its liquidity and smart contract compatibility.

Among Sonic’s most direct competitors are emerging solutions like Sei V2, which blends Ethereum compatibility with the rapid performance of the Sei blockchain. Before the Sonic upgrade, Fantom Opera struggled to scale for high-demand applications, especially when compared to newer networks like Sei V2. 

Sei V2, with its parallelized EVM and focus on high-frequency trading, quickly gained momentum by offering Ethereum dApp support with fast finality and low fees, making it particularly attractive for DeFi and financial applications. The Sonic chain makes this possible for projects and users migrating from Fantom, allowing the ecosystem to not only catch up in terms of development and value capture but also position it as a top-tier competitor.

Sonic’s deep integration with the Ethereum ecosystem gives it a significant edge over Solana and Avalanche, which require developers to adapt to new programming models. Solana uses Rust, while Avalanche’s dual-consensus architecture can add complexity for developers migrating from Ethereum. Sonic, by contrast, using a VM that is fully compatible with Solidity-based smart contracts reduces friction for developers looking to migrate their dApps and ensures a smoother transition, making it a prime choice for Ethereum-native projects, just as emerging projects like Sei have done for their ecosystems.

Keep in mind that the largest and most successful dApps in the world today are all found within Ethereum’s $40+ billion ecosystem, including the following:

• Lido Finance ($23B)
• EigenLayer ($10B)
• AAVE ($9B)
• Ether.fi ($5B)
• MakerDAO ($5B)
• Uniswap ($3.5B)

With Sonic, developers can leverage familiar tools while benefiting from increased scalability and lower costs—a combination that neither Solana nor Avalanche can offer as effectively.

Partnerships and Developer Programs

The Fantom Foundation and newly branded Sonic Labs have been rapidly expanding their ecosystem presence within the blockchain space through a number of key partnerships and development programs. Through collaborations with leading blockchain infrastructure providers and developer toolkits, Fantom and Sonic aim to provide cutting-edge support for dApp builders.

Chainlink Scale & CCIP Integration

Chainlink Scale is a program launched by Chainlink to help blockchain ecosystems optimize their access to Chainlink’s oracle services, enabling faster and more cost-efficient integration of Chainlink’s data and infrastructure. Through the SCALE (Sustainable Chainlink Access for Layer 1 and 2 Enablement) program, participating blockchains can collaborate directly with Chainlink to subsidize the operational costs of Chainlink oracles, making them more accessible to developers within that ecosystem.

By joining the Chainlink SCALE program, ecosystems like Sonic Labs benefit from premium data services at a reduced cost, paving the way for the development of scalable, secure, and interoperable blockchain applications. This is significant beyond just cost-saving measures, as it ties Sonic chain closer to other participants, including:

• Base
• Metis
• Scroll
• StarkNet
• Celo

Additionally, integrating Chainlink’s CCIP (Cross-Chain Interoperability Protocol) is arguably the leading blockchain interoperability technology in existence today. CCIP includes technologies such as cross-chain messaging, multi-layered security, highly scalable architecture, and other features to assist developers in launching sophisticated cross-chain dApps. 

As of 2024, Chainlink has secured over $14 trillion in transaction value across the blockchain space, making it the widely adopted decentralized oracle network in the world. Chainlink has some of the most significant partnerships and integrations in all of crypto, including firms like:

• Google Cloud: Chainlink integrated with Google Cloud to provide hybrid smart contracts that can access off-chain data from Google's cloud infrastructure.
• SWIFT: Chainlink works with SWIFT to provide secure and reliable connectivity between traditional financial systems and blockchain networks. This collaboration helps financial institutions use blockchain technology for cross-border payments and other financial services.
• AccuWeather: Chainlink partners with AccuWeather to provide accurate weather data to dApps. This data is particularly useful for smart contracts that deal with insurance products, where weather events might trigger payouts.
• Amazon Web Services (AWS): AWS collaborates with Chainlink to help developers access decentralized services and data securely.

Rabby Wallet Gas-Free Trading Initiative

In collaboration with Rabby Wallet, Sonic Labs launched a Gas-Free Trading Program to promote network adoption and ease user access. Starting in July 2024, Sonic will sponsor the gas fees for up to 10 DEX transactions per unique user on the Fantom Opera network for 90 days.

The program was designed to target both new wallets and users who have been inactive for over 90 days. With over 22,700 FTM allocated for gas sponsorship, the initiative encourages trading on Sonic-affiliated DEXs such as 1Inch, Beethoven X, ParaSwap, and others. As a result of this program, Rabby will serve as one of the primary wallet launch partners for Sonic, aligning both teams’ commitment to a community-first approach.

Alchemy Partnership

Sonic Labs has also forged a strategic partnership with Alchemy, a top-tier Web3 infrastructure provider. Alchemy will contribute RPC (Remote Procedure Call) support and critical development tools to improve the performance and scalability of both the Fantom Opera and Sonic networks. Alchemy’s robust infrastructure will enhance Sonic’s transaction speeds, ensuring a stable platform for developers to build dApps. This support is crucial for Sonic’s long-term scalability and reliability, especially during the upcoming mainnet launch.

Furthermore, Alchemy will offer access to public and private RPC endpoints for seamless communication between dApps and the Sonic chain. This collaboration also includes up to $5,000 in developer credits for enterprise customers, making Alchemy a cornerstone of Sonic’s developer toolkit.

Sonic Labs Accelerator Program

The Fantom Foundation has successfully executed its Sonic Labs accelerator program, an initiative designed to stimulate innovation using the Sonic technology stack. Running from December 4, 2023, to February 6, 2024, the program aimed to attract the next generation of Web3 founders to the Fantom network. Sonic Labs was specifically developed to identify and support visionary builders in the blockchain sector by offering essential resources, expert guidance, and robust support.

A key feature of the program was the distribution of ~1,000,000 FTM across a select number of projects. This funding was earmarked for the development of minimum viable products (MVPs) within various sectors of the blockchain industry.

Incubator

At the heart of Sonic Labs was its role as an incubator, supporting up to five development teams during the program. Along with financial assistance, the program offered participants technical backing, co-marketing opportunities, and mentorship from key figures in the Fantom leadership, including Andre Cronje. Other notable mentors included Marc Tillement from Pyth, Christophe Fonteneau from Request Finance, and Eli Bernstein, the Fantom Foundation's in-house counsel. In addition to mentorship, projects gained exposure to venture capital partners and were positioned for further investment opportunities. These benefits culminated in the opportunity to be part of the official Sonic mainnet launch in 2024.

By February 12, 2024, projects had been internally selected and began collaborating with the Foundation to refine their MVPs, with prize distribution following shortly thereafter. By February 22, the participating projects were publicly announced, and support continued through August 2024, including strategic planning and introductions to venture capitalists.

Conclusion

The Sonic blockchain is a transformative moment for the Fantom ecosystem, allowing it to more effectively adapt and compete with other leading L1 and L2 blockchain platforms. With its advanced performance capabilities, the Sonic chain is a highly scalable and versatile platform capable of supporting a wide range of applications, tools, and projects. By offering low transaction costs, high throughput, and seamless integration with Ethereum’s liquidity and developer ecosystem, Sonic ensures that it not only catches up with its competitors but emerges as a top-tier network. 

As the blockchain market becomes increasingly competitive, Sonic’s ability to bridge the gap between L1 and L2 solutions while maintaining simplicity and efficiency will be key to attracting developers and users alike. With the launch of this new chain, Fantom’s ecosystem and users are well-positioned to capitalize on the next cycle of DeFi, gaming, and high-frequency applications.

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Disclaimer: This report was commissioned by Sonic Labs. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.