Sonic — the high-throughput EVM (formerly Fantom)
Sonic is the rebranded and re-architected Fantom chain, with a new S token migrated 1:1 from FTM. We handle the migration and the new chain's transaction profile.
Sonic Labs migrated the Fantom Opera chain to a new architecture in late 2024 / early 2025, renaming the network and migrating FTM to S tokens 1:1. For treasuries holding FTM, the migration is a 1:1 swap with cost-basis continuity. The chain's appeal is high throughput EVM with sub-second finality. The DeFi ecosystem includes Beethoven X (Balancer fork), Equalizer DEX, and Aave V3.
What's tracked on Sonic
S token transfers (and FTM legacy)
1:1 migration from FTM to S with cost-basis continuity.
ERC-20 transfers
Sonic DeFi tokens and bridged stablecoins.
Validator staking
Per-epoch reward accrual.
Beethoven X, Equalizer, Aave on Sonic
DeFi positions tracked end-to-end.
Common Sonic transaction patterns we classify
- Send / receive S token
- FTM → S migration (1:1 token swap)
- ERC-20 transfer on Sonic (in / out)
- Validator staking deposit / withdrawal
- Staking reward receipt (per-epoch)
- SpookySwap swap or LP position
- Equalizer DEX swap or concentrated-liquidity position
- Beethoven X (Balancer fork) pool interaction
- Aave V3 on Sonic supply / withdraw / borrow / repay
- Sonic Gateway bridge deposit (Ethereum → Sonic)
- Sonic Gateway bridge withdrawal (Sonic → Ethereum)
- FeeM revenue share receipt (Sonic Arcade developer rebate)
- Token approval (gas only, no balance change)
What changes when you book Sonic
The FTM to S token migration preserves cost basis without realising a gain
The migration from FTM to S is a protocol-level 1:1 token conversion, not a market swap. Wag3s carries the original acquisition date and cost basis from each FTM lot to the corresponding S lot, so no realised gain or loss is triggered at migration. Teams that held FTM across multiple acquisition events see each lot migrated individually with its own basis intact.
Sonic's FeeM mechanism generates income for dApp developers
Sonic's Fee Monetisation (FeeM) program rebates a portion of transaction fees to the smart-contract developers whose contracts generated those fees. For a development team operating on Sonic, these rebates are ordinary income on receipt. Wag3s identifies FeeM distribution transactions and books them as protocol revenue, separate from trading gains or staking income.
Sub-second finality creates high transaction volumes that require automated classification
Sonic's Lachesis aBFT consensus delivers transaction finality in under one second, enabling very high-frequency DeFi activity. Treasuries running automated market-making or yield strategies on Sonic may generate hundreds of transactions per hour. Wag3s processes these in bulk and applies classification rules automatically so high-volume wallets do not require manual review of every transaction.
Sonic accounting questions
How is the FTM → S migration treated?
As a 1:1 token migration with cost-basis continuity. No realized gain on the swap; the original acquisition date and basis transfer to S.
How is the Sonic FeeM (Fee Monetisation) rebate classified in accounting?
FeeM rebates are ordinary income on receipt — a distribution of protocol revenue to developers whose contracts generated transaction fees. Wag3s identifies FeeM distribution events by their originating contract and books each receipt as protocol revenue income at the S spot price on the distribution date. These appear as a distinct income line in your P&L, separate from trading gains or staking rewards.
How frequently do Sonic validator staking rewards accrue, and how are they treated?
Sonic uses per-epoch reward distribution, with epochs occurring roughly daily under the Lachesis aBFT consensus. Wag3s books each epoch's reward accrual as staking income at the S fair market value on the epoch-close date. High-frequency strategies generating many small reward receipts are processed in bulk — every receipt is captured individually to maintain a complete income record for tax reporting.
Other chain coverage and tax guides relevant to this network.
Book Sonic the right way
Free during Alpha. Connect a wallet, see every transaction reconciled to journal entries.