Fantom‘s Transformation: From DAG to Sonic
Fantom, a blockchain platform known for its Directed Acyclic Graph (DAG) design, has undergone a significant metamorphosis. Originally lauded for its fast finality and low transaction fees, Fantom faced limitations due to its reliance on the Ethereum Virtual Machine (EVM) and the Ethereum-derived account storage model. These factors contributed to bloated storage and sluggish execution times. To address these bottlenecks, the Fantom team launched Sonic, a fully independent blockchain network.
Sonic‘s Technological Advancements
Sonic runs on the proprietary SonicVM execution engine, which dynamically translates EVM bytecode into a faster internal format for enhanced execution speed. It optimizes heavy computations to prevent redundant work and pre-analyzes contract code to cache valid jump destinations, further accelerating performance. Notably, SonicVM remains fully compatible with the EVM, ensuring seamless operation of existing Fantom smart contracts on the new blockchain.
To tackle the issue of extensive onchain data storage and slow node synchronization, Sonic employs a novel database design called SonicDB. This design divides the blockchain state into two distinct databases: LiveDB, for swift access to current state and execution, and ArchiveDB, for storing historical data. This separation allows consensus nodes to reduce data storage requirements by up to 90%, significantly lessening hardware demands and synchronization times.
The Rise of the S Token
Sonic‘s mainnet is powered by a new native token, S. FTM holders can effortlessly convert their tokens to S at a 1:1 ratio using the official portal. S remains non-inflationary for the initial six months following the mainnet launch in December 2024. Following this period, 6% of the initial supply will be minted to reward early adopters of the blockchain.
Beyond the initial token distribution, Sonic‘s Gas Fee Monetization (FeeM) mechanism offers developers a share of transaction fees. Up to 90% of transaction fees from participating applications are distributed to developers, while the remaining portion is allocated to validators.
Emerging DeFi Hub: Sonic and Flying Tulip
Andre Cronje, a prominent figure in the DeFi space and co-founder of Fantom, is driving innovation on Sonic with the launch of Flying Tulip, a novel DeFi platform. Flying Tulip, inspired by Curve v2’s dynamic bonding curve, integrates trading, liquidity pools, and lending functionalities. This innovative AMM (Automated Market Maker) adjusts its curvature based on the pool price’s proximity to an external price observed by an oracle. This feature simplifies liquidity management and enhances capital efficiency by concentrating liquidity around the current price.
Flying Tulip goes a step further by introducing faster equilibrium curve updates, narrower ranges, and a unique dynamic loan-to-value model. These advancements, alongside Sonic‘s improved performance and scalability, position the platform as a potential hub for DeFi development and innovation.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
