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Sonic Labs Says Vertical Integration Model Has Delivered About 400% More Deflation Than Fee Burns

According to Sonic Labs, revenue from products including USSD and Metropolis vaults has generated roughly 295,454.55 S since March 1, exceeding the deflationary effect of transaction fee burns.

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Summary

Sonic Labs reported that its Vertical Integration (VI) model has produced roughly 400% greater deflationary impact than transaction fee burns since March 1. The company said products including USSD and Metropolis vaults generated about 295,454.55 S in revenue over the period. The update points to a token-economics approach in which product revenue contributes more to supply reduction than standard on-chain fee burning, a mechanism often used by crypto networks to lower circulating supply.

Terms & Concepts
  • Deflationary impact: A reduction in token supply or net circulating supply growth, typically intended to support scarcity in a crypto asset.
  • Transaction fee burns: A token burn (permanent removal from supply) funded by network fees paid by users on blockchain transactions.
  • Vertical Integration (VI) model: A project structure in which products or services within the same ecosystem generate revenue that can strengthen the token economy.