Solana Name Service (SNS.SOL), previously known as Bonfida (FIDA), has recently launched its SNS Token and developed a detailed tokenomics strategy.
Notably, 40% of the SNS token supply has been allocated to Airdrop. How can users claim their share of the SNS token Airdrop? We will explore the details in this article.
Solana Name Service Unveils SNS Token
Solana Name Service is the domain name service of the Solana Blockchain. The project officially introduced the SNS Token. According to the announcement, this move is a crucial turning point to reorganize and better support the .sol domain holder community.
Previously, FIDA focused on supporting the Serum ecosystem, a decentralized exchange on Solana. However, with the growth of SNS and the needs of the .sol community, FIDA no longer aligned with the project's long-term goals. The SNS Token will build a sustainable incentive system prioritizing .sol domain users.
SNS Tokenomics, Total Supply of 10 Billion
One of the key highlights of the Solana Name Service strategy is SNS's tokenomics. This ensures sustainability and encourages community participation. According to the official announcement, the total supply of SNS is 10 billion.
The allocation plan dedicates 40% of the total supply to early supporters and new users, 20% for the community's future, 26.25% to support ecosystem development, 5% for liquidity, and the remaining 8.75% to support the project's core values.
Allocating 40% of the supply to Airdrop is a significant move. This is intended to attract attention and encourage early user participation. Specifically, 20% of this allocation is reserved for .sol domain holders.
They supported the project even during challenging market conditions. This serves as a mechanism to reward loyalty and promote .sol domain adoption on a larger scale.
SNS Airdrop 40%: Opportunities and Challenges
SNS's 40% Airdrop has generated significant excitement within the Solana community. According to sns.sol, those who own .sol domains, built on SNS, or supported the project during the bear market are eligible for rewards in this Airdrop. Many X users are receiving the SNS Airdrop with domains purchased in 2021.
"40% of the supply is given to early and new supporters!! I can't believe I'm getting a huge Airdrop for something I bought 4 years ago" X user shared
However, this Airdrop also presents specific challenges. With 40% of the total supply being distributed for free, there is a risk of mass selling. Airdrop recipients can realize profits immediately after the token is listed. The ZORA Airdrop is a typical example.
This could exert downward pressure on the SNS price in the initial stages. To mitigate this risk, SNS must effectively implement liquidity support measures and initiatives that encourage token holding.
Additionally, deeper integration of a decentralized identity into the Solana ecosystem could increase long-term demand for SNS. This could reduce selling pressure.
In summary, the Solana Name Service's SNS Token launch, well-structured tokenomics, and 40% Airdrop are strategic steps to promote .sol ecosystem growth and strengthen Solana's position in the decentralized identity space. However, users should keep in mind short-term risks such as price volatility and selling pressure after the Airdrop.
