Sonic Labs CEO: Layer 1 Chains Must Focus on More Than Just Speed

Shift in Layer 1 Blockchain Strategy: Layer 1 networks are moving beyond competition based solely on speed and transaction costs, focusing instead on user and developer retention as block space becomes commoditized. Sonic Labs is implementing protocol-level changes to enhance the builder environment and create a more attractive ecosystem.

Tokenomics and Value Return: Sonic Labs is revising its fee model to ensure that on-chain activity translates into real value for token holders, moving from an inflationary to a deflationary model through mechanisms like token burns. This shift aims to create scarcity and benefit token holders as usage increases.

Competitive Positioning Against Ethereum and Layer 2s: Unlike Layer 2 solutions that depend on Ethereum, Sonic Labs operates its own network, allowing for faster protocol changes and experimentation. This independence is seen as a competitive advantage in the evolving blockchain landscape.

Focus on Sustainable Business Models: As the crypto market transitions away from speculation, Sonic Labs is prioritizing sustainable growth by fixing tokenomics, building partnerships for grants, and shifting towards a business-oriented culture that includes marketing and institutional sales.