Tokenomics

Ecosystem Tokens Explained

The ecosystem comprises three main tokens, each serving a specific purpose in the ecosystem, collectively working towards SonicSpheres mandated goal of offering a sustainable and profitable all encompassed DAF (Decentralized Autonomous Fund), inspired by solidly.

The platform introduces a comprehensive token structure, encompassing SPHERE, gSPHERE, & oSPHERE, each of which presents users with diverse advantages,motivations and financial engineering mechanics. The supply of SPHERE tokens is algorithmically controlled via a bonding curve mechanism rather than traditional LP, delivering a stable bedrock for SPHERE tokens while providing liquidity at market-driven rates.

SPHERE, akin to Solidity’s SOLID token, will be disbursed through the SonicSphere Bonding Curve, consistently backed by the ecosystems native gas token $S (Sonic). By virtue of the bonding curve mechanics we have built into the ecosystem, its price maintains a level of ≥ 1 S/SPHERE.

gSPHERE, akin to veSOLID, involves staking SPHERE to acquire gSPHERE. To accommodate enhanced product market fit in alignment with user demand, SonicSphere has removed the 4-year locking mechanism initially conceived in the Solidly ecosystem, allowing for a more free flowing involvement in the governance of the ecosystem. Staking SPHERE for gSPHERE is only in effect during active voting periods across “Auction Gauges”, whereby resetting votes to 0 enables withdrawal back to SPHERE. Below we outline and unpack each respective token's role within the ecosystem along with the benefits it offers.

Tokens

SPHERE

The primary asset of the SonicSphere ecosystem — backed by 1 $S floor value.

$SPHERE logo

SPHERE is the primary ecosystem token, akin to what SOLID is to Solidly. The token derives its value from the transitional qualities users are exposed to when participating in governance by locking SPHERE for gSHPARE & participating in governance. Yield collected from SonicSpheres cPoL (Complete Protocol Owned Liquidity) is auctioned off at a discount, in return for $SPHERE & distributed to gSPHERE holders, as a reward for their active participation in Auction Gauge votes. This SPHERE is claimable at any time.

Utilities:

• Buy at floor to acquire & increase your IBV (Intrinsic Borrowing Value) exposure
• Lock to mint gSPHERE for governance and emissions farming

• Use to bid in Reward Auctions, acquiring arbitrage value from protocol-owned asset yield

• Serves as reserve collateral in the bonding curve (always backed by 1 $S)

• Swap for $S via the bonding curve

gSPHERE

Governance token, minted by locking SPHERE. Enables protocol control and emissions share.

$gSPHERE logo

SonicSpheres governance & voting token. It is used for voting on Auction Gauges during cPoL acquisition phases by deciding which Auction Gauges to support with oSPHERE emissions, enabling SonicSphere to accumulate the yield bearing assets that support and grow the projects DAF (Decentralized Autonomous Fund). gSPHERE can also be used as collateral to borrow $S (Sonic tokens) from the bonding curve, liquidation & fee free, adding additional game theory, use cases and strategy to the ecosystem.

Utilities:

• Vote on Auction Gauges to direct oSPHERE emissions

• Earn oSPHERE emissions every epoch for active governance participation

• Use as collateral to borrow $S from the bonding curve (97.5% LTV, no liquidation risk)

• Automatically receives a share of SPHERE rewards harvested from Reward Auctions

• Can burn oSPHERE to convert it into permanent gSPHERE voting power

oSPHERE

Perpetual call option on SPHERE at the floor price. No expiry.

$oSPHERE logo

oSPHERE is an options token emitted to gauges as incentives to execute transactions across SonicSphere’s “Auction Gauges”. It functions as a call option for SPHERE at the designated base price (1 SPHERE/S). These are issued to gauges as incentives for running the protocols cPoL initiatives as a means of achieving and accruing Complete Protocol Owned Liquidity, dependent on gSPHERE votes.

Utilities:

• Exercise for SPHERE at floor price (1 $S per SPHERE)

• Burn to mint permanent gSPHERE, increasing your governance power

• Trade on secondary markets (if/when listed)

• Arbitrage opportunities when SPHERE trades above floor

• Used as incentive emissions across Auction Gauges — the only way for non-holders to access SPHERE at floor price

Comparison Overview

Feature	Solidly	SonicSphere
Primary Token	SOLID	SPHERE
Voting / Governance Token	veSOLID	gSPHERE
Incentive Token	SOLID	oSPHERE - Call option on SPHERE, strike price = floor price, no expiration
Ve Lock	Fixed lock of 4 years	1 week unlock period
Assets integrated with	Solidly AMM	Any asset containing yield bearing properties can be integrated
Primary Token	Liquidity Incentivized	Token-owned Liquidity via Bonding Curve
Voting Token Revenue	SOLID: locked (ve33 rebase) Voter Rewards: swap fees	Voter Rewards = Yield generated from SonicSphere cPoL assets + A portion of oSPHERE emissions per the emission schedule
Floor Price	N/A	1 SPHERE = 1 S
Borrowing Functionality	N/A	gSPHERE can be used to borrow $S at floor price. No liquidations.