SODAX: ICON’s Shift from Independent Blockchain to Outsourcing Infrastructure
May 12, 2025 — ICON (ICX), once a major player in the ICO boom and dubbed the “Korean Ethereum,” is making headlines again—this time with a bold rebrand to SODAX and a strategic move to migrate its DeFi operations from its own Layer-1 blockchain to Sonic, an EVM-compatible network. The decision comes as ICON seeks to optimize its costs and refocus on delivering innovative products in the decentralized finance (DeFi) space.
In a recent interview with CoinDesk, ICON founder Min Kim shared the rationale behind moving away from maintaining an independent blockchain and outsourcing its Layer-1 infrastructure to Sonic, which rebranded from Fantom in 2024.
The Move to Sonic: A Smarter, Cost-Effective Approach
“Back in 2017, we had to build our own Layer-1 because there was no other viable option,” Kim said. “But today, owning and maintaining a Layer-1 doesn’t make financial sense. There are cheaper, more efficient alternatives available.”
Kim emphasized that outsourcing to Sonic enables ICON to streamline its operating expenses by millions of dollars while freeing up resources to concentrate on its DeFi products. The move eliminates the high fixed costs and operational risks associated with running a decentralized blockchain network, which can be both costly and stressful.
“Maintaining a decentralized network with validators worldwide is a massive undertaking,” Kim explained. “We’ve spent eight years managing our own Layer-1, and now outsourcing to Sonic allows us to focus on what matters—innovation and delivering value to our users.”
Reducing Risks and Focusing on Innovation
Beyond cutting costs, Kim highlighted another advantage of this strategic shift: risk management. By outsourcing infrastructure to Sonic, ICON’s DeFi layer becomes insulated from potential issues within Sonic’s network. While a breach in Sonic’s infrastructure would be damaging, it wouldn’t directly affect ICON, creating a valuable separation of risks.
“If Sonic gets hacked, it’s not our fault,” Kim explained. “Sonic is focused on security and validator infrastructure, so we can concentrate on building applications that directly benefit users.”
A New Identity: SODAX and Cross-Chain Liquidity
With the rebrand to SODAX, ICON is pivoting towards cross-chain liquidity products. The project is migrating from ICX tokens to a new token, SODA, while maintaining distinct tokens for both SODAX and Sonic. Notably, Sonic’s fee-sharing model will benefit SODA holders by directing 90% of transaction fees back to them, providing a strong economic incentive.
Kim acknowledged that the trend of projects running their own Layer-1 blockchains is fading. “Many projects underestimated the capital and effort needed to maintain their own Layer-1,” he said. “Ethereum and Solana are exceptions, as they focus on validators and security. But for most projects, it just doesn’t make sense to run a proprietary blockchain anymore.”
The End of the Layer-1 Era?
As the market matures, ICON’s rebrand to SODAX represents a shift away from the premium valuations that once favored proprietary Layer-1 blockchains. Kim predicts that more projects will follow SODAX’s lead, focusing on product development rather than costly infrastructure.
“We’re moving back to basics—lowering costs, streamlining operations, and focusing on our original mission: putting financial products directly into people’s hands,” Kim concluded.
With this strategic pivot, SODAX (formerly ICON) is positioning itself for the next phase of DeFi innovation while avoiding the pitfalls of maintaining a standalone Layer-1 blockchain.
