1 Project Introduction

1. Project owner
Introduction to Sonic Labs: Sonic Labs is the organization behind the Sonic project,
formerly known as Fantom. It is led by Michael Kong, who is also the founder and CEO
Link. Sonic Labs aims to develop a robust blockchain ecosystem with a focus on speed,
security, and EVM compatibility Link.

History and Mission: Sonic Labs originated from Fantom, which started in South
Korea in 2018. The rebranding to Sonic Labs marked a strategic shift toward providing high-
performance blockchain solutions Link.

2. Project Purpose
Sonic's primary objective is to redefine Layer-1 blockchain performance by achieving
high transaction speeds and rapid transaction finality. It utilizes a Proof-of-Stake (PoS)
consensus mechanism combined with a Directed Acyclic Graph (DAG) architecture to
enhance scalability and efficiency. Sonic offers a novel tokenomics model, including token
burning and developer incentives, to foster ecosystem growth. The platform is designed to be
EVM-compatible, ensuring seamless integration with existing Ethereum-based applications
while offering improved performance. Sonic's architecture is optimized to reduce latency and
transaction fees, making it a competitive choice for developers and users seeking efficient
DeFi and gaming applications Link.

3. Industry Relevant
Sonic addresses key challenges in the blockchain industry, such as scalability and
speed. By offering a high-performance Layer-1 solution, Sonic can attract developers and
users seeking efficient DeFi applications. Its potential impact includes elevating decentralized
finance platforms by providing a sturdy infrastructure for high-throughput and low-latency
transactions. Sonic's capabilities position it as a leading platform for Web3 applications,
contributing significantly to the blockchain ecosystem's growth and adoption. Additionally,
Sonic's focus on gaming and decentralized economies highlights its potential to transform
industries beyond finance, such as gaming and digital asset management Link, Link.
2. Analysis
1. Actors, Roles, and Relationships
The component of Actors, Roles, and Relationships is suitable for Sonic because it
highlights the interdependent nature of its ecosystem. Sonic involves key actors such as Sonic
Labs, Validators, Developers, and Users, each playing crucial roles:

Sonic Labs Oversees the development and maintenance of the Sonic ecosystem,
ensuring its technological advancements align with industry needs.

Validators play a crucial role by validating transactions and creating new blocks, ensuring
the integrity and security of the network. The minimum requirement to run a validator node
on Sonic is 500,000 S tokens. These nodes actively participate in the Sonic network’s day-to-
day operations, validating transactions and securing the blockchain by staking S tokens. Link

Developers: Developers are supported by Sonic Labs through the Innovator Fund,
which allocates up to 200 million S tokens to encourage the development of new
decentralized applications and infrastructure. The Sonic Gateway and EVM compatibility
make it easy for developers to build applications using familiar tools like Solidity and Vyper,
enhancing the ecosystem's growth Link.

Source: Link.

Users: Engage with the network through various applications, benefiting from fast
transaction speeds and low fees.

Relationships
Sonic Labs and Validators: Sonic Labs relies on validators to secure the network,
while validators benefit from staking rewards and network participation. Link

Developers and Users: Developers create applications that users interact with,
fostering a symbiotic relationship where developers are incentivized by user engagement
 .

Source: Link

Validators and Developers: Validators ensure the network's stability, allowing

developers to build reliable applications. Developers, in turn, contribute to network usage,
which benefits validators through increased transaction volume. Link

This interplay between actors is crucial for the Sonic ecosystem's success, as it
ensures a balanced and sustainable environment for growth and innovation.

2. Network and Resources

Network
Sonic's DAG structure enables concurrent transaction validation, improving
scalability and speed. It processes thousands of transactions per second with sub-second
finality.

Sonic employs the Lachesis Protocol, a DAG-based consensus algorithm that utilizes
asynchronous Byzantine Fault Tolerance (aBFT). This mechanism allows for high throughput
and near-instant transaction finality, making it suitable for applications requiring speed and
security. The aBFT ensures robust security by enabling validators to process transactions
independently without waiting for global consensus, enhancing efficiency and
decentralization. Link
Source: Link

The native $S token is central to Sonic's ecosystem, used for transaction fees, staking,
and governance. It incentivizes validators and supports tokenomics, ensuring network
stability. Block production is facilitated by validators who stake $S tokens, aligning their
interests with the network's stability. This tokenomics model ensures a secure and active
ecosystem by rewarding validators for their participation. Link

ICT Resources
Hardware Infrastructure: Sonic's validator nodes and archive nodes are crucial for
network operations. Validator nodes require significant computational power for transaction
validation, while archive nodes store historical data, supporting applications and chain
explorers. Link
Network Infrastructure: Sonic utilizes cloud services for scalability and reliability. Its
decentralized bridge (Sonic Gateway) enhances interoperability with other networks like
Ethereum. Link

Code Resources
Sonic uses Solidity for smart contracts due to its EVM compatibility, allowing
seamless integration with Ethereum-based applications. Languages like Go or Rust are likely
used for core development. Link
 Source: link
Sonic's open-source nature encourages developer contributions, enhancing its DAG
structure and consensus mechanism. Link

Knowledge Resources
Data Repositories

Sonic Labs provides tools for accessing historical on-chain data at minimal costs,
enabling developers to make informed decisions. This decentralized data access layer
supports real-time price tracking and asset performance analysis, which is crucial for
optimizing asset management strategies. Link

The integration with Chainlink Data Feeds further enhances data quality and
reliability, providing developers with accurate market data for building secure and scalable
applications. Link

3. Functional
Membership Management
Add/Remove Members: Sonic blockchain allows users to join as validators or
delegators. Validators must stake a minimum of 500,000 S tokens to participate in block
creation and transaction validation. Delegators can stake their tokens with validators to earn
rewards without running nodes themselves. Link

Assign Roles/Rights: Validators are assigned critical roles in maintaining network

security and consensus. Delegators, while not directly involved in block production,
contribute by selecting trustworthy validators and staking their tokens. Link

Permissions Management

Permission Rule Set: Validators are granted permissions to validate transactions,

produce blocks, and participate in governance. Delegators have voting rights proportional to
their staked tokens, ensuring decentralized decision-making. Link
 Compliance: Sonic enforces strict compliance through penalties for validator
misconduct. Misbehaving validators risk losing their staked assets, ensuring alignment with
network rules and security standards. Link

Management Processes

Governance Model: Sonic employs a community-driven governance model where

users can propose and vote on upgrades or new partnerships. This model ensures that
decisions are decentralized and community-oriented. Link

Validator Management: Validators are managed through a robust staking system

that incentivizes active participation and reliable node management. Rewards are structured
around staking, further aligning validators' interests with network health. Link

Behavioral