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The transition to SODAX is moving into its final stages. As the ICON Network’s economic activity winds down and focus shifts to the new hub-chain infrastructure on Sonic, we are also sunsetting the legacy incentive structures that powered our earlier DeFi ecosystem.
This month, we outlined the phased shrinkage of the ICON Network. Today, we are providing clarity on what this means for sICX holders and Balanced participants.
What is changing?
The ICON Foundation has previously incentivized the Balanced Savings Rate and the ICX/sICX liquidity pool. As the network enters its final lifecycle phases, these rewards are coming to an end:
Savings Rate rewards: Ending the on March 2.
Liquidity rewards: Ending on March 13.
Why is this happening?
We are sunsetting the high costs of maintaining an independent Layer 1 and redirecting those resources toward powering fee-generating DeFi applications with SODAX. The sICX capital previously used to generate these incentives is being migrated to the unified liquidity inventory of the SODAX system.
Reallocation of funding to SODAX
The remaining funds held within the contracts for Balanced incentives will be transferred to the SODAX DAO, to be used for new liquidity incentives following the launch of SODAX Stake and SODAX Pool.
Next steps for you.
While the ICON blockchain will remain live for transactions and migration, there will soon be zero incentive to keep funds in legacy liquidity pools or the Savings Rate.
Withdraw & Unstake: Prepare to withdraw your funds from Balanced as they stop earning rewards, and unstake your sICX.
Claim Rewards: Claim any remaining staking or liquidity rewards once funds have been withdrawn.
Prepare for SODA: When the SODAX Stake app launches (expected this March), you will be able to migrate your ICX to SODA at a 1:1 ratio, and stake them for rewards.
You will be able to stake, and also supply newly migrated SODA to the SODAX Money Market for yield, once SODAX Stake and SODAX Pool launch – as part of the ongoing roadmap for the ICON Network’s economic shutdown.
To keep an eye on the progress of migration, be sure to follow us here on X, and check our blog for updates.