DFINITY Foundation

Internet Computer Association

Synapse.vote (formerly ICP Maximalist Network)

Arthur’s Neuron (used to be cycle_dao)

ICDevs.org

CryptoIsGood

Anvil

ICPL.app

Inactive (Request Removal) - The Fools' Court

ysyms

The Accumulators’ Neuron

RawTech Venture

Paul Young

ICPMANUAL

8yeargangDAO

John Wiegley

Isaac Valadez

Krzysztof Żelazko

Always Rejects

Nicolas.ic

Smaug’s Neuron for Retail Investors

ICLight.io

This is the proposal for the NNS to create an SNS DAO to govern the SONIC DEX.  

### Purpose  
SONIC DEX  is the open source decentralised exchange  governed by the people for the people.

Sonic presents a comprehensive set of protocols that enable the development, issuance, and trading of various financial products based on any pair of underlying ICRC tokens. Our methodology incorporates on-chain swap/order books with the on-chain settlement, facilitating the establishment of efficient markets. The outlined protocols maintain fairness and trustlessness, fostering genuinely open markets not subject to centralized governance. Furthermore, the protocols are inherently extensible, necessitating no special permissions for integration with other smart contracts.Sonic presents a comprehensive set of protocols that enable the development, issuance, and trading of various financial products based on any pair of underlying ICRC tokens. Our methodology incorporates on-chain swap/order books with the on-chain settlement, facilitating the establishment of efficient markets. The outlined protocols maintain fairness and trustlessness, fostering genuinely open markets not subject to centralized governance. Furthermore, the protocols are inherently extensible, necessitating no special permissions for integration with other smart contracts.

The Sonic DAO is being established to manage and guide the trajectory of Sonic as a communal asset, belonging to none. Owners of SOC tokens have the ability to stake these as neurons, enabling them to propose and vote on changes to the Sonic dapp.

The SNS DAO will maintain a treasury of SOC tokens and ICP, resources earmarked to finance the continued enhancement of the dapp and to algorithmically incentivize users, fostering positive usage and propelling growth. By providing contributing users with SOC tokens and neurons, they stand to gain from the long-term success of Sonic. It is anticipated that this strategy will cultivate a robust network of advocates to champion the cause of Sonic.

### Governance  
SOC is used for governance of the Sonic platform. SOC holders are able to vote on proposals related to the development and management of the platform, giving them a say in its future direction.  
SOC token distribution as follows  
* Each decentralisation sale participant (including the Community Fund) will receive their tokens in a basket of 5 equal value SOC neurons with dissolve delays of 0, 3, 6, 9 and 12 months respectively  
* The team will receive their tokens in a basket of 9 neurons, each with a 1 month dissolve delay, but with vesting periods of  0,6,12,18,24,30,36,42 and 48 months   
* Community private sale participants  will receive their tokens in a basket of 5 equal value neurons of which first neuron have a dissolve delay of 0 and rest all have a dissolve delay of 3 month but with vesting periods of of 0, 3, 6 and 9  months respectively  
* Fleek will receive their tokens in 2 equal value neurons each with a dissolve delay of 1 month , but with a vesting period of 0 and 1 year.  

The governance parameters for SONIC DEX are proposed to be initially set as:  

Min stake: 5 SOC tokens  
Min staking period for voting: 1 month (2629800 seconds)  
Max staking period: 1 year  
Initial Voting Rewards: 2 % of SOC token supply minted annually  

Max staking bonus (for 1 year): 2x  
Max age for age bonus: 6 months  
Max age bonus: 1.25x  

These parameters can be verified by querying the governance canister's get_nervous_system_parameters method [here](https://dashboard.internetcomputer.org/canister/24scz-zyaaa-aaaaq-aaapq-cai).  

### Token Utility
Trading fees are an important utility for $SOC native tokens because they provide a direct source of revenue for the platform. When users trade on Sonic, they pay a small fee for each transaction. This fee is typically a percentage of the total trade value and can range from 0.05% to 1%, depending on the category of trade.
$SOC can be used to pay for these trading fees, they will also receive a discount on the trading fees if they pay in Sonic Token. This discount can vary depending on the amount of the token held or the user's trading volume. The discount rules are governed by the DAO and can be subject to change through proposal voting.  
See our tokenomics to know more about fees & SOC utility [here](https://sonicdex.gitbook.io/sonic-whitepaper/token-utility).  

### Rewards & Incentivization  
SOC serves as an incentive mechanism for liquidity providers on Sonic. Liquidity providers are individuals or entities that provide liquidity to the platform by depositing assets into SOC's liquidity pools. In exchange for their contributions, liquidity providers receive a share of the trading fees generated by the platform. SOC tokens are distributed to liquidity providers as a bonus and as a way of incentivizing continued participation in the platform.
In addition to this $SOC will be used for incentivize traders and sonic stakers.  
SOC token operates as a medium of exchange within the wider cryptocurrency ecosystem. It can be purchased or traded on various cryptocurrency exchanges and can be utilized for transactions such as payments for goods and services.  

For more information on the SONIC SNS please read the whitepaper [here](https://sonicdex.gitbook.io/sonic-whitepaper/).  


#### Proposed Token Distribution  

Token name: SOC  
Total token supply: 125 Million  

#### Initial distribution:  

56.5%: Reserved for the SNS treasury & under control of the SONIC DAO  
22%: To be distributed by the NNS run decentralisation sale which includes the Community Fund  
14.5%: Allocated to the SONIC dev team which vests over 4 years  
2%: Allocated to community round private sale investors which will be vested over 1 year  
4% : Allocated to fleek team which will be vested over 1 year  
1%: Allocated for airdrop pool which will distribute to past users of Sonic and M Cake holders. All unclaimed tokens will be sent to the treasury post 6 months.  

Ledger transaction fee: 0.001 SOC tokens.  

For more information on the initial token allocation please read [here](https://sonicdex.gitbook.io/sonic-whitepaper/)  

### Decentralised Sale

22% of the total supply of tokens are proposed to be distributed via an SNS decentralisation sale. If the proposal is adopted, the sale will start after the specified delay and is scheduled to conclude midday on Sunday 18th June UTC. If the maximum number of ICP configured below is raised before that date the sale will conclude earlier.

Sale participation parameters:

Min participation: 1 ICP
Max participation: 100,000 ICP
Max to be raised: 850,000 ICP
Min to be raised: 425,000 ICP
From Community Fund: 283,305 ICP
Min participants: 500
SOC token price based on hardcap : 0.0309 ICP
SOC token Price based on softcap: 0.0154

The sale is open to anyone. Participation is either via the launchpad in the NNS front end: https://nns.ic0.app/ or on the command line using quill.  

### The Dapp

The Sonic Dex is composed of multiple canisters, with the SNS directly controlling the following canisters:  

`3xwpq-ziaaa-aaaah-qcn4a-cai` (sonic swap)   
`eukbz-7iaaa-aaaah-ac5tq-cai` (sonic frontend)  
`fxgi7-lqaaa-aaaah-ac5va-cai` (sonic analytics)  
`utozz-siaaa-aaaam-qaaxq-cai` (wicp)  
`aanaa-xaaaa-aaaah-aaeiq-cai` (xtc)  

Furthermore, all other canisters are indirectly controlled by the SNS through their connection to one of the canisters above.  

For more information regarding sonic dex and its features,  please see our developer docs [here](https://docs.sonic.ooo/).  

### Roadmap  

Our goal is to create a truly decentralised, secure, and high-performance trading platform that caters to novice and experienced traders. We believe that our roadmap reflects this vision and demonstrates our unwavering commitment to delivering the best possible experience to our users.  

The Sonic team is fully dedicated to realising the potential of decentralised trading. Our carefully crafted roadmap encompasses a diverse range of features and improvements to provide an unparalleled trading experience for our users while ensuring platform security and sustainability.  

See our detailed roadmap [here](https://sonicdex.gitbook.io/sonic-whitepaper/future-of-sonic-roadmap)

Sonic DEX - Proposal to create an SNS-DAO for Sonic