After once being a top contender in the ICO race and dubbed “the Korean Ethereum,” ICON (ICX) is making waves again. The company, now rebranded as SODAX, has announced a major shift in its strategy by migrating its decentralized finance (DeFi) infrastructure from its own Layer-1 blockchain to Sonic, a high-speed, EVM-compatible network. The change comes as ICON seeks to cut costs and focus on driving innovation in DeFi products.

ICON’s founder, Min Kim, sat down with CoinDesk to discuss the rationale behind the decision. Originally, in 2017, ICON was forced to build its own Layer-1 blockchain due to a lack of viable alternatives. However, Kim believes that in today’s market, it no longer makes sense for projects to bear the hefty costs associated with running their own blockchain.

The Shift to Sonic: Streamlining Operations and Reducing Costs

“Maintaining a proprietary Layer-1 blockchain doesn’t make sense anymore,” Kim explained. “When we started, we had no other choice. Today, there are much cheaper and more efficient options available.”

By shifting its infrastructure to Sonic, ICON is able to drastically reduce its operational expenses. This strategic move not only cuts costs but also allows the company to refocus its resources on enhancing its DeFi offerings.

“Outsourcing to Sonic eliminates the high fixed costs associated with running a Layer-1 network. We can now focus on building innovative products and scaling them without the burden of blockchain maintenance,” Kim added.

A Risk-Reduced Model and Focus on User-Facing Products

In addition to cost-cutting, Kim highlighted another key benefit of outsourcing: risk mitigation. Since ICON’s DeFi operations will now run on Sonic’s infrastructure, any potential security or technical issues within Sonic’s blockchain will not directly affect ICON’s DeFi layer.

“Outsourcing to Sonic means that if there’s an issue on their end, it doesn’t directly impact us,” Kim explained. “We focus on building user-centric applications, while Sonic handles the underlying infrastructure and security.”

SODAX’s New Role in Cross-Chain Liquidity

With the rebrand to SODAX, the project is shifting its focus to cross-chain liquidity solutions, while migrating from ICX tokens to a new token, SODA. Despite the two separate tokens, Kim emphasized the strong economic incentives for SODA holders. Sonic’s fee-monetization system will direct 90% of transaction fees back to SODA token holders, making it a profitable investment for long-term holders.

Kim argued that the shift away from proprietary Layer-1 blockchains is indicative of a broader trend in the industry. Many projects, he said, will follow SODAX’s lead and move away from the costly and inefficient model of maintaining their own blockchain infrastructure.

The End of Layer-1 Domination?

Kim believes that the era of Layer-1 blockchains dominating the market is coming to an end. “For most projects, running a proprietary Layer-1 is just too expensive and unsustainable in the long term,” he noted. “Ethereum and Solana are exceptions because they’ve built their ecosystems around validators and security. But for most others, focusing on infrastructure rather than the product is a losing game.”

SODAX’s shift signals a new approach to the DeFi space—one that prioritizes product development and cross-chain solutions over costly, self-maintained infrastructure. With the rebrand and new focus, Kim is confident SODAX will lead the way in this changing landscape.

“We’re focused on lowering costs, streamlining operations, and returning to our roots: delivering financial products that make a real impact on users,” Kim concluded.