S Sonic

Use Cases of Sonic

The Sonic token serves multiple functions within the Sonic ecosystem. Here are the key use cases:

• Transaction Fees: Users can use the Sonic token to pay transaction fees within the network, making it the primary means of interaction with the blockchain.
• Staking and Network Security: Sonic token holders can participate in staking to help secure the network. The minimum amount required for staking is 1 Sonic, while running a personal validator requires 50,000 Sonic.
• Governance: The Sonic token allows users to vote on changes within the ecosystem, influencing its development and governance.
• Integration With DApps: The token is used within decentralized applications on the Sonic network, providing users with access to unique features and opportunities.

Key Features

• Speed and Scalability: Sonic finalizes transactions in less than a second and supports up to 10,000 transactions per second, making it ideal for large-scale usage.
• Dynamic Fee Structure: Sonic introduces a feature called Fee Monetization, allowing developers to earn up to 90% of the fees generated by their applications, which encourages the creation of new DApps and supports the network’s internal economy.
• Decentralization and Security: Sonic relies on its own validators to secure the network, eliminating long waiting periods typical in optimistic rollups like Arbitrum or Optimism, reducing the risk of hacks and improving the overall reliability of the network.

Pros of Sonic

• Speed: Sonic achieves transaction finality in 1–2 seconds, making it ideal for applications requiring real-time responsiveness. It can handle over 4,500 transactions per second (TPS), offering near-instant finality.
• Interoperability: Sonic emphasizes building an interconnected blockchain ecosystem with tools that facilitate cross-chain communication, allowing seamless interactions between different blockchains.
• Energy Efficiency: Its architecture consumes minimal energy compared to traditional Proof of Work (PoW) systems, making it an eco-friendly solution.
• Scalability: Sonic's refined infrastructure aims to handle higher transaction volumes without compromising on cost or performance, making it suitable for applications in gaming, finance, and supply chains.
• Community Empowerment: With improved governance mechanisms, the platform allows users to have a stronger voice in decision-making processes, fostering community engagement.

Cons of Sonic

• Ecosystem Size: While growing, Sonic’s ecosystem is still smaller than Ethereum’s or Solana’s, which can limit its reach and adoption.
• Limited Proven Stress Scenarios: As a newer player, Sonic's performance under extreme network stress is less tested, which can raise concerns about its reliability in high-pressure situations.

Founders of Sonic

• Michael Kong: Founder and CEO of Sonic Labs, the team behind Sonic Chain (formerly Fantom). He has been instrumental in shaping the project's vision and technical direction.
• Andre Cronje: A key figure in the project's evolution, serving as the Chief Technology Officer. He played a crucial role in reviving and rebranding Fantom as Sonic.

Note: There is another project named Sonic under Mirror World, led by Chris Zhu, but it is distinct from the Sonic Chain (formerly Fantom) discussed here.

Investors in Sonic

Sonic has secured funding from several key investors, including:

• Bitkraft Ventures: Led the Series A funding round, contributing significantly to Sonic's total funding of $16 million.
• Galaxy Interactive: Participated in the Series A funding round, supporting Sonic's growth.
• Big Brain Holdings: Also participated in the Series A funding round, contributing to Sonic's fully diluted valuation of $100 million.

These investments are crucial for Sonic's development and expansion in the gaming-focused Solana Layer 2 network.

No. The permissibility of Sonic under Islamic law is debated among scholars. Some consider it halal if used responsibly as a medium of exchange and not for speculative trading, while others view it as haram due to its lack of intrinsic value and high volatility.

Key Considerations for Halal Cryptocurrencies

• Fairness and Transparency: Transactions should be clear and free from deceit. Cryptocurrencies like Sonic provide transparency through blockchain technology.
• Prohibition of Riba: Cryptocurrencies should not enable interest-based lending or staking.
• Avoidance of Gharar: The speculative nature and extreme price volatility of cryptocurrencies may constitute gharar, making them haram.
• Intrinsic Value and Ethical Use: Money in Islam should serve as a stable medium of exchange with inherent value or backing by tangible assets. Cryptocurrencies often lack physical backing, raising questions about their legitimacy.

Scholarly Perspectives

• Halal Arguments: Cryptocurrencies can act as a medium of exchange similar to fiat currency, and transparent blockchain technology ensures fairness and prevents fraud.
• Haram Arguments: High volatility and speculative trading resemble gambling (qimar), which is prohibited in Islam. Some cryptocurrencies are used for illegal activities, and most lack intrinsic value.

Ethical and Shariah-Compliant Cryptocurrencies

• Tangible Backing: Cryptocurrencies backed by physical assets, such as gold, are more likely to be halal.
• Utility-Driven Projects: Cryptocurrencies that serve a clear purpose, such as facilitating trade or funding ethical initiatives, are preferable.
• Transparency: Blockchain projects that prioritize openness and accountability align better with Islamic values.