Solana’s Sonic SVM Chain Ignites Liquidity With Aggressive New Burn Mechanism

Solana’s latest upgrade just threw gasoline on its liquidity fire—Sonic SVM now auto-burns transaction fees, turning deflation into a built-in feature. Traders win, hodlers win, and VC bagholders? Well, they’ll find a way to spin this as ’strategic tokenomics.’

The move slashes circulating supply while boosting network efficiency—no more begging validators to prioritize your trades. Early tests show a 15% reduction in SOL’s liquid supply within 48 hours of launch. That’s either genius or desperation, depending on which hedge fund manager you ask.

One thing’s certain: When chains start burning tokens faster than a 2022 NFT project, you know we’ve entered the next phase of crypto’s perpetual motion machine. Just don’t ask where the yield comes from.

Sonic SVM to use fees for boosting liquidity

The upcoming update also includes changes to how Sonic SVM fees work. Notably, Solana tokens, which represent a 12.5% share of Sonic fees, will be staked on the Solana mainnet, generating staking rewards.

These rewards will go to users who hold vested SONIC tokens and contribute to liquidity pools for Sonic’s SVM chain. Alan Zhu, co-founder and chief product officer at Sonic, noted that the system is designed to scale liquidity alongside network usage.

“As we continue scaling our infrastructure to support millions of users across our gaming and social platforms, this value accrual mechanism ensures our token economy grows in tandem with network usage. The more the network is used, the stronger the buy pressure and deeper the liquidity becomes,” Alan Zhu, Sonic.