Sonic Labs has canceled its scheduled token minting. The project will not create the planned 47.6 million $S tokens this year.
The token jumped 17.7% on the news. The announcement came one week after the project's first-ever token mint.
Sonic launched with a fixed supply of 3.175 billion $S. Its plan was to inflate that supply by 1.5% annually over six years.
The team says the only ongoing funding need is for validator rewards, which are critical for network security. All other inflation is off the table.
This decision follows significant leadership changes. Several founders, including DeFi pioneer Andre Cronje, resigned from the board shortly after the initial minting announcement.
The token had already lost about 97% of its value from its all-time high in January 2025. The market reaction suggests investors were pricing in dilution risk.
The key question is how Sonic will fund validator rewards without new token minting. The team has signaled this is a priority but has not fully detailed the mechanism.