---
title: "Sonic Is Fantom's Attempt at a Fresh Start"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/295531725.md"
description: "Sonic, Fantom's new Layer-1 blockchain launched in late 2024, aims to revive the ecosystem by addressing past failures: the $125M Multichain exploit and poor developer incentives. The network introduced Fee Monetization to return up to 90% of fees to developers. Despite a 1:1 token migration from FTM to S, the market remains skeptical with S down 97% from its peak. The original Fantom chain retired on June 30, 2026, forcing all users to Sonic."
datetime: "2026-08-11T11:38:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/295531725.md)
  - [en](https://longbridge.com/en/news/295531725.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/295531725.md)
generator: "portal-rs"
---

# Sonic Is Fantom's Attempt at a Fresh Start

Sonic, a Layer-1 smart contract blockchain, is Fantom's (FTM-USD) attempt at a fresh start. After launching the new network in late 2024, the development team initiated a 1:1 token migration, swapping legacy FTM for the new S token. However, the market remains skeptical, with S down 97% from its January 2025 high to roughly $0.024 today. My stance on Sonic is neutral.

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The overhaul was built to solve two root problems: the $125 million Multichain exploit that drained liquidity, and an incentive structure that starved app developers of gas revenue. Now that the original Fantom chain was officially retired on June 30, 2026, everyone is on Sonic. Whether the new network has successfully addressed those two core issues is not yet known. I'll further discuss these problems in this article.

## **What Broke Fantom and What Sonic Was Supposed to Fix**

Let's see what actually broke Fantom and what Sonic was expected to fix. At its 2021 peak, Fantom boasted a genuine decentralized finance (DeFi) ecosystem with over $12 billion in total value locked (TVL). Its downfall came from two key issues. The first was the mid-2023 collapse of Multichain, an external bridging service used to connect blockchains. Although Fantom didn't build Multichain, it bore the brunt of the reputational fallout when $125 million in user funds became frozen.

The second issue was broken fee economics. Historically, transaction fees went entirely to validators — the network operators who run server nodes to verify transactions and secure the blockchain. The application developers who actually drove network usage received nothing. 

Sonic addresses this with Fee Monetization (FeeM), a program that redirects up to 90% of an application's fees straight back to its developers. With the old Fantom network permanently shut down as of June 30, 2026, the entire ecosystem has now completed the mandatory move to Sonic.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**