Fantom allocates $120M in FTM tokens for Sonic migration

Amaka Nwaokocha14 hours agoFantom allocates $120M in FTM tokens for Sonic migrationThe fund will be used for native application grants, strategic grants to decentralized applications, and the development of infrastructure tools for developers and users.1972 Total views16 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe Fantom Foundation, the organization behind the Fantom platform, has announced a financial commitment to support the launch of Sonic, a new ultra-fast network. 

On June 20, the Fantom Foundation announced that it is committing up to 200 million Fantom (FTM) tokens worth about $120 million to help developers and companies move their projects to Sonic as part of the Sonic Labs Innovator Fund.About the funds

The funds will be used to find and secure partners who can help build and grow the Sonic network. These partners include developers creating apps directly on Fantom, developers making decentralized applications (DApps) and partners providing crucial tools and services.Source: Fantom Foundation

Fantom’s announcement 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.Sonic Foundation

This development follows 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 Fantom development team, Sonic will have a new layer-1 solution and a built-in layer 2 that directly bridges the Ethereum Virtual Machine-compatible network to Ethereum.

Related: Fantom seeks Multichain liquidation in attempt to recover $122M from exploit

Through the Sonic Chain’s architecture, Sonic users will reportedly be able to tap into Ethereum’s vast ecosystem of decentralized applications, liquidity providers and community.Fantom incentives history

This isn’t the first time Fantom Foundation has provided incentives for projects. In May, it backed the idea of “safer memecoins” by setting aside $6.5 million of FTM tokens to reward developers.

In May 2023, a new Fantom Opera network team program called the “Gas Monetization Program” was launched to pay developers the gas fees they generate from users. Specifically, the program pays eligible developers 15% of the total gas fees generated by their apps.

Cointelegraph contacted the Fantom team for more information on the Sonic Labs fund but has yet to receive a response.

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