Sonic Labs Abandons Gas Fee Model for Vertical Integration

Sonic Labs is overhauling its value accrual model to address criticisms of gas fee dependence. The team behind the EVM-compatible layer-1 blockchain, formerly known as Fantom, has announced plans for vertical integration.

This strategy aims to control key infrastructure, including flagship primitives and core products across trading, credit, payments, settlement, and risk markets. The team will either build or acquire high-quality application teams from the industry to reinforce its monetization system, FeeM, which allows app builders to capture up to 90% of fees while burning the rest.

Sonic Labs cited Hyperliquid as an example of successful vertical integration, where every trade and fee directly strengthens the $HYPE token because the application and infrastructure are inseparable. The team plans to execute buybacks at sustainable rates as revenue streams build.