Solana Name Service (SNS.SOL) Launches New Token with 40% Airdrop

Solana Name Service (SNS.SOL), formerly Bonfida, has recently launched the SNS token and developed a detailed tokenomics strategy.

Solana Name Service (SNS.SOL), previously known as Bonfida, has recently launched the SNS token and unveiled a detailed tokenomics strategy. This move follows a period of focused development on the Solana domain name service, a project that emerged from the restructuring of Bonfida.

Previously, FIDA was designed to support the Serum ecosystem, a decentralized exchange on Solana. However, with the evolution of Solana Name Service (formerly Bonfida) and the changing needs of the .sol domain community, FIDA no longer aligned with the project’s long-term goals.

The new SNS token will establish a sustainable incentive system focused on domains and community contributions.

Solana Name Service Unveils SNS Token and Tokenomics

Solana Name Service, the domain name service operating on the Solana blockchain, has officially introduced the SNS token. This marks a significant shift as the project pivots to better serve the community of .sol domain users.

A shift in focus was necessary due to the changing priorities of the project and its supporters. Previously, FIDA, the Bonfida token, was designed with a different vision in mind—one that focused on supporting the Serum ecosystem.

However, with the rapid growth of Solana Name Service and the evolving needs of the .sol domain community, FIDA no longer aligned with the project’s long-term goals.

To ensure a smooth transition and optimal support for the domain name service in the Solana ecosystem, the project leadership decided to transition the project to a new token named SNS. This token will establish a sustainable incentive system, shifting emphasis to .sol domain users and those who have contributed to the project through bear market periods.

According to the project’s announcement, the total supply of SNS is 10 billion tokens. Among this, 40% will belong to early supporters and new users who contributed to the project in different ways. A portion of the tokens will also be allocated to support the project’s core values.

Moreover, 20% of the total supply will go to the community for future endeavors. Another 26.25% is allocated for ecosystem development, while 5% will be used for liquidity and 8.75% will support the project’s core values.

Out of the 40% allocated for an airdrop to early supporters and new users, 20% will go to .sol domain users who stood by the project during challenging market conditions. This serves as a reward for their loyalty and a mechanism for SNS to drive broader adoption of .sol domains on a larger scale.

40% Of SNS Token Goes To Airdrop As Project Pledges Support For Early Users

The 40% airdrop of SNS has sparked significant excitement within the Solana community. According to sns.sol, those who own .sol domains, have built with SNS, or supported the project during bear market periods are eligible to receive rewards from this airdrop. Many X users get SNS airdrops for domains that they bought in 2021.

“A generous 40% of the supply is being dropped to early and new supporters!! I cannot believe I’m about to get a huge airdrop for stuff I bought 4 years ago” shared X user ‘Solana Space’

However, this airdrop also presents certain challenges. With 40% of the total supply being distributed for free, there is potential for users to engage in risky mass sell-offs. Airdrop recipients may opt to take profits immediately after the token is listed.

This could exert significant downward pressure on the SNS price in the early stages. To mitigate this risk, it will be crucial for SNS to ensure that sufficient liquidity support measures and initiatives to encourage token retention are effectively implemented.

Additionally, deeper integration of decentralized identity into the Solana ecosystem could help shift demand away from short-term gains and encourage users to consider the long-term value of holding SNS tokens. This can reduce selling pressure.

In summary, the launch of the SNS token by Solana Name Service, along with its well-structured tokenomics and 40% airdrop, represents a strategic step to shift focus to the growth of the .sol ecosystem and solidify Solana’s role in the decentralized identity space.

However, users should remain mindful of short-term risks such as price volatility and selling pressure following the airdrop. As Solana-based projects continue to evolve, adapting to new developments and remaining engaged with the community will be crucial for sustained success.