Token Generation Event (TGE): SonicSphere Fair Launch
The SonicSphere Fair Launch will be executed through the sale of oSPHERE, our protocol’s perpetual call option token. This structure ensures equal entry for all participants, eliminates early arbitrage risk, and primes the ecosystem for sustainable growth by establishing immediate value for SPHERE and oSPHERE.
How it Works
Participants will purchase oSPHERE tokens at a fixed rate of 0.5 SONIC per token.
Each oSPHERE can be exercised to mint 1 SPHERE at a strike price of 1 SONIC, payable into the SPHERE bonding curve.
Therefore, the total cost to acquire 1 SPHERE is 1.5 SONIC:
0.5 SONIC = Cost to acquire oSPHERE
1 SONIC = Cost to exercise oSPHERE into SPHERE
This ensures price parity across all participants, removing unfair advantages for whales, bots, or early buyers.
Raise Structure
Starts 10PM UTC Tuesday 3rd June running to Wednesday 2 July 10 PM UTC (latest)
Whitelist Addresses will have until Friday the 6th of June to get in early
Tuesday 10th the round will open to all retail (providing hard cap is not met)
oSPHERE Price: 0.5 SONIC
Strike Price: 1 SONIC (to convert oSPHERE - SPHERE)
Effective Entry Cost: 1.5 SONIC / SPHERE
Min Cap: 5M SONIC
Max Cap: 10M SONIC
Fair launch TGE Duration: Up to 31 days or until hard cap is met
Launch Commitment & Audit: Triggered immediately once the min cap is reached
Refund: If min cap is not reached within the 31 day window, the protocol is invalid & all funds will be refunded in whole to participants.
All oSPHERE will be claimable once the TGE ends. Participants can then exercise it immediately to mint SPHERE
Why This Structure?
Why This Structure?
This approach was updated from our origional idea as the initial approach of buying directly from the bonding curve and distributing based on socalised slippage meant there was an arbitrage overhang. To circumvent this we have opted for the following approach as it:
Ensures a fair, single entry price for all participants
Eliminates arbitrage overhang from socialized bonding curve buys
Give instant value to oSPHERE (0.5 SONIC intrinsic value), enabling the auction system to function from day one
Bootstrap the protocol with backed, protocol-owned capital
Capital Utilization
Funds raised during the TGE will be used to:
Buy SPHERE from the bonding curve to raise its market price to 1.5 SONIC per SPHERE, matching the effective TGE price
Lock SPHERE as gSPHERE, aligning the protocol team with governance and reinforcing protocol-owned governance power
Borrow SONIC against this gSPHERE (97.5% LTV), using the borrowed capital to fund:
Audits, legal & incorporation expenses
Liquidity provisioning
Auction seeding
Core operations and team runway
Price protection reserves
This approach sees 60% of the raise directly reinvested back into the ecosystem by way of
Auctions (use of capital to purchase initial auctions until MEV takes over)
Direct injection of liquidity into the bonding curve with initial purchase to raise bonding curve price to 1.5 SONIC / SPHERE (at parity with TGE entry)
Formation of oSPHERE & SPHERE LP's on external DEX's
Price Preservation, capital reserved to buy SPHERE from the bonding curve to preserve the 1.5 SONIC entry price at TGE as well as preserving the price of oSPHERE
Budget Breakdown (Based on Minimum Raise Cap)
Auction Reserve
30%
1,373,995.41
To buy yield-bearing tokens (YBTs) via auction. If unused due to MEV competition, redirected to ops & price reserve.
Protocol Ecosystem Fund
20%
915,996.94
Audits, legal, DAO incorporation, infra, marketing, team expansion.
Team
20%
915,996.94
Salaries & growth fund for core contributors.
Price Protection Reserve
10%
457,998.47
To defend SPHERE price at 1.5 S if needed. SPHERE bought is locked for gSPHERE.
External oSPHERE/S LP
10%
457,998.47
LP seeded at 0.5 S/oSPHERE. Bribed with oSPHERE emissions.
External SPHERE/S LP
10%
457,998.47
LP seeded at 1.5 S/SPHERE. Bribed with oSPHERE emissions.
Total
100%
4,579,984.69
Strategic Advantages
A single price for all participants (1.5 SONIC/SPHERE)
No sniping, no value extraction from early whales
oSPHERE gains immediate value (0.5 S), kickstarting the auction flywheel from day one
Capital is fully utilized to grow liquidity, seed auctions, and bootstrap protocol utility
Capital Efficient Strategy - Reduce Your Cost of Entry
Users can effectively reduce their cost of entry to 0.525 SONIC / gSPHERE by borrowing against their position once they have exercised their oSPHERE. Example below Based on 30,000 SONIC outlay on TGE
1. User spends 10,000 SONIC in TGE, receives 20,000 oSPHERE (10,000 / 0.5 = 20,000)
2. User claims oSPHERE and exercises them with 20,000 SONIC bringing total outlay to 30,000 SONIC.
3. User receives 20,000 SPHERE and stakes them for 20,000 gSPHERE.
4. User borrows 19,500 SONIC back from bonding curve at 97.5% LTV using staked gSPHERE as collateral (20,000*0.975=19,500)
5. Borrow back adjusted (30,000-19,500/ 20,000), user only paid 0.525 SONIC / gSPHERE
*User now has option, if they chose, to loop this position by using the 19,500 borrowed SONIC to buy more SPHERE, Stake, Borrow e.t.c however it is recommended you understand what you are doing before engaging in such an operation.
Summary
The SonicSphere Fair Launch sets a new standard for DeFi token generation events:
Simple, elegant, and fair
Fully collateralized supply growth
Deep integration of protocol-owned liquidity and governance alignment
Capital-efficient mechanisms like IBV (Intrinsic Borrowing Value) available from launch
This approach in itself is a DeFi-native capital formation strategy, purpose-built to bootstrap the most sustainable, autonomous yield fund on Sonic.
For any questions, join our Discord.
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