Solana Name Service (SNS.SOL), formerly known as Bonfida, recently introduced the SNS token and developed a detailed strategy for its distribution.
40% of all SNS tokens is allocated for the airdrop. We explain how to receive rewards and what risks are associated with the distribution.
Solana Name Service launched the SNS token
Solana Name Service is a domain name platform on the Solana blockchain. The project has officially introduced the SNS token. This is an important step that can significantly improve interactions with the community of domain owners.
Previously, FIDA supported the Serum ecosystem, a decentralized exchange on Solana. However, with the growth of SNS and the needs of the community, FIDA ceased to align with the long-term goals of the project. The SNS token will create a sustainable incentive system focused on domain users.
SNS Tokenomics
A key element of the Solana Name Service strategy is the SNS tokenomics. It ensures sustainability and encourages community participation. According to official data, the total supply of SNS is 10 billion tokens. The distribution looks like this:
40% of the total supply is designated for early supporters and new users;
20% — for the future community;
26.25% will support the development of the ecosystem;
5% is allocated for liquidity;
8.75% will support the core values of the project.
At the same time, a full 40% of the tokens will go to the future airdrop, half of which is reserved for .sol domain owners. This rewards their loyalty and serves as a mechanism for SNS to stimulate broader adoption of domains.
What you need to know about the airdrop
The 40% SNS airdrop has generated significant excitement in the Solana community. According to sns.sol, owners of .sol domains who created projects using SNS or supported the project during bear market periods are eligible for rewards from this airdrop. Many users of X (formerly 'Twitter') will receive tokens for domains they purchased in 2021.
«Generous 40% of the supply is distributed among early and new supporters! I can't believe I'm getting a huge airdrop for things I bought 4 years ago,» shared a user X.
However, concerns arise regarding the risk of mass sell-offs, as 40% is a large number of tokens, and their simultaneous entry into the market threatens to put downward pressure on the price. A vivid example is the ZORA airdrop. To minimize this risk, SNS must implement effective measures to support liquidity and token retention.
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