> For the complete documentation index, see [llms.txt](https://sonic-ai-works.gitbook.io/sonic-networks-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://sonic-ai-works.gitbook.io/sonic-networks-docs/documentation/sonic-tokenomics/governance-strategic-lock-and-burn.md).

# Governance, Strategic Lock & Burn

Planned strategic lock, governance and burn-policy boundaries for SONIC.

## Strategic lock

Planned strategic lock designation: **3,000,000,000 SONIC** through **Streamflow Finance**.

The exact source allocation(s), beneficiary, lock vs vesting type, start/cliff/end dates, cadence, Streamflow stream/contract identity and creation transaction remain **TBA** until approved and verified.

This is a supply state, not an additional allocation.

## Burn

SONIC policy defines a **2% quarterly burn**.

The eligible burn denominator/calculation base remains **TBA**. The 2% value must not be described as 2% of total supply, circulating supply, treasury inventory, fee inventory or user balances unless the approved policy explicitly selects that base.

```
SCHEDULED → CALCULATED → AUTHORIZED → SUBMITTED → CONFIRMED → BURNED → RECONCILED
```

Every executed burn should publish the amount, calculation base, supply before/after, transaction signature, execution authority and confirmation timestamp.

## Governance

Governance remains planned/configuration-gated. Proposal eligibility, voting-power methodology, delegation, quorum, timelock, execution authority, safeguards and emergency controls remain product/deployment gated.

Token ownership alone does not grant application administration, treasury authority, transfer-fee configuration authority or production deployment authority.

Any future SONIC transfer-fee rate change must remain at or below the documented **5% / 500 bps policy cap** and follow the configured authority/governance process. The policy cap is distinct from Token-2022's absolute `maximumFee` amount.


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