ICON Rebrands to SODAX, Migrates to Sonic for DeFi Infrastructure
ICON has rebranded to SODAX and is migrating its DeFi infrastructure from its Layer-1 blockchain to Sonic, an EVM-compatible network aimed at high-speed, low-cost transactions. Key points include:
- Sonic was previously known as Fantom and underwent a rebrand in 2024.
- Min Kim, ICON founder, stated moving to Sonic reduces operational costs significantly by millions.
- This outsourcing allows SODAX to focus on innovation and product delivery rather than infrastructure management.
- Kim noted that running a decentralized network is costly and stressful; outsourcing mitigates this burden.
- Risk separation is enhanced, as issues with Sonic won't directly impact SODAX’s DeFi operations.
- The ICX token has seen a nearly 99% decline since late 2018, prompting the move towards more sustainable practices.
- SODAX tokens will be migrated to a new token called SODA, with transaction fees benefiting SODA holders.
- Kim predicts a trend where many projects will reevaluate their need for independent Layer-1 infrastructures.
This shift reflects a broader industry move towards optimizing operational efficiency without maintaining costly Layer-1 properties.