Solana Name Service (SNS.SOL) to Launch New SNS Token, Replacing Existing FIDA Token

The Solana Name Service (sns.sol), widely known by its former name Bonfida, is making a major change. It announced plans to launch a new token called SNS.

Solana-based web3 domain service provider Solana Name Service (sns.sol), formerly known as Bonfida, is set to introduce a new token named SNS. This token will replace the existing FIDA token as part of a broader initiative to align the project’s future goals with the interests of .sol domain holders.

Why Is SNS Replacing FIDA

According to a recent announcement, the team behind sns.sol explained why a new token is being introduced. They stated that while FIDA initially served its purpose within the Serum decentralized exchange ecosystem, its design no longer supports the current vision of SNS.

As a result, the introduction of the SNS token aims to bridge that gap and establish stronger community incentives.

The announcement highlighted that Bonfida’s early tokenomics were closely linked to Serum, with FIDA being integrated into that trading environment. However, with the progression of time, the disconnect between FIDA’s original objectives and the evolving needs of the .sol community became increasingly apparent.

The team recognized that FIDA’s distribution model did not effectively reward .sol domain holders, and the token system that once facilitated growth began to limit it. After careful consideration, they concluded that a new SNS token was crucial to unlock the platform’s full potential.

Launching SNS To Align Incentives with Community Vision

Beyond addressing structural issues, the launch of SNS signifies a broader effort to unite and empower the .sol domain ecosystem. The team explained that FIDA’s utility was tied to a different user base, which left .sol domain users underrepresented.

They also noted that FIDA’s incentive structures were not optimal for the long-term growth of the protocol, and the new SNS token is designed specifically for the domain name ecosystem, aiming to correct these imbalances.

The upcoming SNS token also comes with an emphasis on inclusivity. The team plans to share details in the coming weeks about how past, present, and even future .sol domain users can participate in the new token’s distribution.

This approach is intended to recognize the loyalty of early users while also engaging new members of the community. By directly involving domain holders with the SNS token, the project aims to foster a more engaged and aligned community.

FIDA Token Price Drops As SNS Is Announced

The announcement of the new SNS token has had a significant and immediate impact on the market price of the FIDA token.

Following the news, FIDA’s price dropped sharply by over 13.57%, falling to $0.064644. Its market capitalization now stands around $71 million.

The post Solana’s DNS Service Solas (Formerly Bonfida) Announces Plans to Launch New SNS Token to Replace FIDA appeared first on CryptoCoinsNews.