Sonic Labs has announced a shift to a "vertical integration strategy," moving away from the traditional Layer 1 subsidy model. This new approach focuses on developing integrated, user-facing products and infrastructure to enhance the application and sustainable growth of the S token. Sonic aims to create a synergistic ecosystem where core infrastructure, applications, and liquidity are centered around the S token economy. The strategy includes three core initiatives: acquiring high-quality application teams to integrate core financial infrastructure into Sonic's product matrix, channeling all revenue from integrated applications back into the protocol to boost the S token's value, and establishing a sustainable token buyback mechanism based on actual revenue. Sonic Labs emphasizes that this approach addresses the challenges of commoditization and cross-chain competition, ensuring sustained demand for the S token. The plan's implementation is underway, with future updates expected on leadership, the Sonic Development Fund, and comprehensive revenue streams.