FeeM Auctions

FeeM Auctions are Hedgehog’s native market mechanism built specifically for Sonic’s FeeM system, Sonic’s internal accounting model that tracks and distributes blockspace fees across projects. In Sonic, every project accumulates a measurable FeeM balance based on the gas it consumes and the activity it generates on the network.

Hedgehog turns these FeeM flows into a market, allowing participants to bid, speculate, and trade on the future performance of projects in Sonic. Instead of simply observing a project’s on-chain growth, traders can take positions on it, expressing views about which protocols will drive the most usage, congestion, and transaction fees in the coming weeks.

How It Works

At regular intervals, a project’s upcoming FeeM rewards, its projected share of blockspace fees for a given future period, are auctioned off to the market. Bidders compete to win the rights to collect that project’s FeeM rewards for the duration of the auctioned period.

• The auctioned FeeM represents a forward-looking claim on a project’s economic activity.

• The auction winner receives the project’s FeeM earnings for that specific time window.

• The project itself receives immediate capital from the winning bid, converting future activity into upfront value.

This transforms Sonic’s FeeM accounting into a live, tradable forecast of ecosystem activity. Each auction becomes a snapshot of market sentiment, a real-time indicator of which projects traders believe will dominate Sonic’s blockspace in the near future.

A Market for Future Network Performance

FeeM Auctions merge prediction markets with blockspace economics. They allow the Sonic community to speculate on the next wave of on-chain activity, turning protocol performance into an investable asset. If a project is expected to see a surge in transactions, its upcoming FeeM auction will attract higher bids; if interest wanes, its value falls, creating continuous, data-driven price discovery for ecosystem usage.