KEY TAKEAWAYS
- ICON transitions to SODAX, introducing a new hub-chain, Sonic, to streamline DeFi development under the SODA token.
- The migration process allows ICX holders to convert their tokens to SODA, with a two-way migration option available until SODA staking is released.
- Sonic’s EVM-compatible architecture aims to enhance DeFi scalability with features like fast finality and a builder-first fee model.
- The SODA token will replace ICX and BALN as the governance token, supporting fee-driven growth and Protocol-Owned Liquidity.
On September 9, 2025, ICON (ICX) announced its transition to SODAX (SODA), a vertically integrated decentralized finance (DeFi) platform supported by the Unified Liquidity Layer. This strategic move introduces a new hub-chain, Sonic, which aims to streamline development under a single brand and token: SODA.
The transition will begin with an initial test migration on September 15, 2025, allowing users to engage with the SODA token and explore the new user interface and experience of the SODAX platform. A migration software development kit (SDK) will enable partner platforms, such as Balanced and Hana, to facilitate migration directly within their applications.
Migration Details and User Options
During the early community test phase, the SODA token will not support liquidity, staking, or other DeFi activities on Sonic. These activities will continue for ICX on the ICON blockchain. A two-way migration process will allow holders to choose between migrating early or continuing to use ICX. ICX tokens will be redeemable 1:1 for SODA on Sonic, and users will not need S tokens to receive SODA, but will require them to transact on the Sonic chain post-migration.
The two-way migration will remain available until the future release of SODA staking, allowing holders to continue participating in DeFi, trading, and staking through ICX. An additional migration for bnUSD to new contracts will also be available through the same migration frontend. The Balanced team will provide further details on the migration process for BALN tokens.
Technical Advancements and Future Plans
The ICON ecosystem has achieved significant technical advancements, including a cross-chain messaging standard and native interoperability across more than ten chains. However, the demands of this infrastructure have outgrown the original network. Transitioning to Sonic, a high-performance Ethereum Virtual Machine (EVM)-compatible blockchain, allows resources to be redirected toward protocol development and adoption.
Sonic’s architecture, featuring fast finality, parallel execution, and a builder-first fee model, provides a robust foundation for SODAX’s next phase, focusing on scaling DeFi applications. The SODA token will serve as the governance token for the SODAX platform, replacing both ICX and BALN, and will have a fixed maximum supply of 1.5 billion tokens. This model aims to ensure fee-driven growth, with generated fees funding the DAO treasury, supporting staking rewards, and driving Protocol-Owned Liquidity (POL) growth.
The ICX to SODA migration marks a significant step in aligning all elements of the SODAX DeFi platform under a unified vision. Further updates, including step-by-step user guides, will be shared in the coming weeks to support the community throughout this transition. More information can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
ICON’s transition to SODAX represents a significant shift in its DeFi strategy, introducing a new hub-chain, Sonic, to streamline operations under the SODA token. This move is set to enhance the platform’s capabilities and user experience.
Recent industry reports indicate a broader trend of DeFi token migrations aligned with platform rebranding and user utility expansion. This aligns with ICON’s strategic migration to SODAX, which aims to improve DeFi accessibility and interoperability.
A CoinDesk report highlights that ICON’s transition involves leveraging Sonic’s infrastructure to focus on DeFi innovation and capital efficiency. This supports the impact of ICON’s rebranding to SODAX, positioning it as a more competitive DeFi ecosystem.
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