According to Sonic Labs, the new vertical integration strategy will phase out Layer-1 subsidies and introduce a sustainable revenue-based buyback model to strengthen the S token economy.
Sonic Labs officially announced a vertical integration strategy to enhance S token utility and sustainable protocol growth. The plan ends Layer-1 subsidies, redirects all application revenue to the core protocol, and establishes a buyback mechanism funded by real protocol income. Sonic Labs will also acquire fundamental financial infrastructure applications while preparing further updates on leadership, tokenomics, funding, and governance to ensure a sustainable and self-sufficient ecosystem.