Token Economics

SONAR token economics are designed to be sustainable and prevent the death spiral that kills most crypto projects.

The Problem SONAR Solves

Most crypto projects use fixed token burn rates. As the project grows, token supply shrinks, prices must climb constantly, and when price drops, the burn rate becomes untenable. The project dies or shifts models.

SONAR uses adaptive tokenomics that respond to market conditions, preventing this death spiral.

Adaptive Burns

SONAR adjusts burn rates automatically based on circulating supply:

Over 50 Million SONAR
  • 20% burned on each purchase
  • 50% to creator
  • 30% to operations
35-50 Million SONAR
  • 15% burned
  • 60% to creator
  • 25% to operations
20-35 Million SONAR
  • 10% burned
  • 65% to creator
  • 25% to operations
Under 20 Million SONAR
  • 0% burned (no burn)
  • 80% to creator
  • 20% to operations

As supply shrinks, burn slows and creator rewards increase. This prevents the death spiral.

Long-Term Sustainability

SONAR targets an equilibrium at 50M SONAR:

  • Not deflationary (would require massive burn)
  • Not inflationary (would dilute holders)
  • Provides yield (burn reduces supply)
  • Sustainable forever

At 50M SONAR: 20% purchase burn = equilibrium. Creator share 50% = fair. Operations 30% = sufficient.

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