Why ICON Decided to Rebrand as SODAX and Move On from Its Layer-1 Focus.

ICON, once a highly anticipated project in the cryptocurrency space and dubbed “the Korean Ethereum,” is reemerging with a bold new strategy. After a period of stagnation, ICON has rebranded as SODAX and announced its move away from maintaining its own Layer-1 blockchain, opting instead to leverage the high-speed, EVM-compatible network, Sonic, to run its decentralized finance (DeFi) infrastructure.

This decision marks a significant pivot for the project, which once saw itself as a major player in the blockchain race. ICON’s founder, Min Kim, explained the rationale behind the move in a recent interview with CoinDesk, emphasizing that maintaining its own blockchain no longer made sense in a landscape where more cost-effective and advanced alternatives are available.

The Economics Behind the Shift

“Back in 2017, building our own Layer-1 was necessary because the infrastructure wasn’t there,” said Kim. “Today, we’re seeing more mature, faster, and cheaper solutions in the market. Outsourcing the infrastructure to Sonic allows us to cut millions of dollars in operating expenses while maintaining a focus on what matters most—DeFi innovation.”

The strategic outsourcing to Sonic’s network enables SODAX to focus its efforts on creating user-centric decentralized applications without the heavy burden of blockchain maintenance. This allows the team to redirect resources and energy toward advancing their core products and offerings.

Risk Reduction and Operational Efficiency

Kim also highlighted the risk mitigation benefits that come with relying on Sonic’s infrastructure. With a dedicated focus on securing and maintaining the blockchain, Sonic can absorb infrastructure-related risks, leaving SODAX to concentrate on building and scaling decentralized applications without the looming threat of network vulnerabilities.

“Outsourcing allows us to de-risk our operations,” Kim said. “Sonic handles the security and validator infrastructure, while we can continue to innovate with our DeFi products. If Sonic faces an issue, it’s not directly our fault, which creates a valuable separation of risks.”

Rebranding to SODAX and Shifting Token Dynamics

As part of the rebrand, the ICX token is being transitioned to a new token, SODA, marking a fresh start for the platform. While Sonic and SODAX will each have distinct tokens, Sonic’s fee structure will benefit SODA holders. A remarkable 90% of transaction fees generated on the Sonic network will be distributed to SODA token holders, providing a solid incentive for holding SODA long-term.

This move signals a broader industry trend, according to Kim, who believes that many projects currently maintaining their own Layer-1 blockchains will eventually follow SODAX’s lead and focus on product development rather than infrastructure. “Many projects were too focused on building their own Layer-1s, thinking an ecosystem would naturally form around them,” Kim stated. “That’s a misconception. The real focus should be on products and services that attract users.”

A New Era for DeFi Projects

SODAX’s rebrand and infrastructure shift also underscore the end of the era where every crypto project felt the need to create its own Layer-1 blockchain. Instead, projects are now looking for better, more cost-effective solutions to power their DeFi offerings.

Kim noted that established Layer-1 blockchains like Ethereum and Solana have managed to build robust ecosystems, but for most projects, running a self-sustained Layer-1 blockchain isn’t viable in the long term. By outsourcing infrastructure, projects can now focus their efforts on innovation and user experience.

“We’re going back to basics,” Kim said. “By streamlining operations and reducing costs, we can double down on what we originally set out to do: create innovative financial products that people want and need.”

With its new focus on cross-chain liquidity solutions and DeFi, SODAX is positioning itself as a leader in this evolving landscape. Through strategic partnerships, lower operating costs, and an enhanced product offering, the rebranded platform is ready to take the next step in its journey—without the overhead of managing a complex Layer-1 blockchain.

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