ICON (ICX), once seen as a major contender in the blockchain space, has rebranded to SODAX and announced a significant shift in its strategy. The project, which once aimed to build its own Layer-1 blockchain, is now outsourcing its infrastructure to Sonic, an EVM-compatible network known for its high-speed, low-cost transactions. This change is designed to optimize resources and refocus efforts on decentralized finance (DeFi) innovation.
A Strategic Shift in Focus
ICON, often referred to as “the Korean Ethereum” during its early days, was a pioneering project in the blockchain space. However, its struggle to maintain relevance in the face of intense competition and a rapidly evolving market led to its pivot. Founder Min Kim explained that building and maintaining an independent blockchain, while necessary in 2017, no longer made sense in today’s ecosystem, where more efficient, cost-effective solutions are available.
“Back then, there was no other choice but to build our own Layer-1,” Kim said in an interview with CoinDesk. “But now, the landscape has changed. There are faster, cheaper, and better alternatives. Outsourcing to Sonic allows us to reduce costs significantly and focus on building the products that matter.”
Cost Efficiency and Risk Management
The decision to outsource the infrastructure to Sonic allows SODAX to streamline its operations, significantly cutting down the high costs associated with running a Layer-1 blockchain. Kim emphasized the financial advantages of this strategy, noting that it saves millions of dollars in operational expenses, making the project more sustainable in the long run.
Moreover, this move offers risk mitigation. By relying on Sonic’s infrastructure, SODAX can separate the risks of blockchain vulnerabilities from its DeFi platform. “If Sonic faces a problem, it doesn’t directly affect our operations. They focus on securing the network, while we focus on innovation and creating user-friendly DeFi applications,” Kim explained.
Transition to SODA Token and Enhanced Ecosystem
As part of the rebrand to SODAX, the project is transitioning from the ICX token to a new token called SODA. Sonic, while maintaining its own token, will allow SODAX token holders to benefit from transaction fees. Notably, 90% of Sonic’s transaction fees will be passed back to SODA holders, creating a strong economic incentive for the community.
This move also signifies a larger trend within the blockchain industry. Kim believes that many projects currently running their own Layer-1 blockchains will eventually see the value in outsourcing, as the costs and efforts required to maintain these systems outweigh the benefits. “Ethereum and Solana are exceptions,” Kim noted. “For most projects, running a self-sustained Layer-1 doesn’t make sense anymore.”
A Vision for the Future of DeFi
SODAX’s shift is part of a broader industry trend where the focus is moving away from Layer-1 infrastructure and towards building high-quality, user-centric DeFi products. Kim stressed that projects should prioritize product development rather than trying to build everything from scratch. “The true value lies in creating applications that solve real problems for users,” he stated.
With its rebranding and pivot to a cross-chain DeFi model, SODAX is positioning itself as a leader in the evolving DeFi landscape. The project’s new approach, centered on cutting operational costs and focusing on high-demand DeFi products, is designed to meet the growing needs of the market while adapting to a rapidly changing crypto ecosystem.
In a time when blockchain projects are rethinking the necessity of their own infrastructure, SODAX’s decision to move forward without the burden of a self-maintained blockchain could set a new precedent for efficiency and innovation in the space.
