Solana Name Service Launches SNS Token with 40% Airdrop, Replaces FIDA

On May 6, 2025, the Solana Name Service (SNS), formerly Bonfida, announced the launch of its new SNS token. The project unveiled its tokenomics strategy, prioritizing community engagement, with 40% of the total supply allocated for airdrops to early and new supporters. The SNS token replaces the FIDA token to better align with the .sol domain community, enhancing decentralized identity solutions on the Solana blockchain. The announcement triggered a sharp decline in FIDA’s price, as the market adjusted to FIDA’s reduced utility with SNS taking its place.

What is Solana Name Service?

Solana Name Service (SNS) is a decentralized naming protocol on the Solana blockchain, enabling users to replace complex wallet addresses with human-readable .sol domain names. Launched in 2021 as Bonfida, SNS simplifies cryptocurrency transactions, supports Web3 identity creation, and facilitates cross-chain interoperability via the Wormhole bridge, connecting .sol domains to networks like Injective, BNB Chain, and Base. SNS domains serve as payment methods, on-chain identities, and usernames for dApps, with over 247,000 registered domains. The platform also offers a Software Development Kit (SDK) for developers and integrates with Solana marketplaces like Magic Eden for domain trading as NFTs. SNS’s mission is to create a composable, user-friendly Web3 identity ecosystem, akin to Ethereum’s ENS but optimized for Solana’s high-speed, low-cost transactions.

SNS Token: Functionality, Relation to FIDA, and Differences

The SNS token is a community token designed by .sol holders for .sol holders, created to align the future of Solana Name Service with its most frequent users. According to the official statement, “$SNS gives the existing and future .sol community a direct stake in how the identity layer of Solana evolves,” shifting control from a small group to the broader .sol community. Its core purpose is to recognize the contributions of .sol holders, with long-term flexibility to support participation, reward builders, and enhance the .sol experience based on community input. SNS is not tied to specific governance mechanisms or fee reductions at launch, but its design allows for future community-driven use cases, with SNS actively seeking feedback on how to best utilize the token.

FIDA, launched in December 2020 with a 1 billion token supply, powered Bonfida’s ecosystem, including Serum DEX and SNS. However, its tokenomics, heavily tied to Serum, became unsustainable as SNS’s focus shifted to .sol domains. The SNS token replaces FIDA to address these misalignments, with a new distribution model prioritizing .sol holders. FIDA holders are eligible for SNS airdrops (500 million tokens allocated to FIDA holders and other Solana communities), providing a transition path, but FIDA’s utility within SNS is effectively phased out.

SNS Tokenomics and Airdrop Mechanism

The SNS token has a total supply of 10 billion, with a distribution designed to promote long-term community growth and ecosystem development. The tokenomics, detailed in SNS’s whitepaper, are as follows:

• 40% Airdrop (4 billion tokens):

  • Genesis Airdrop (20%): 2 billion tokens, with 1.5 billion claimable by ~275,000 wallets holding .sol domains as of a snapshot (date unspecified) and 500 million for Solana communities (FIDA holders, pyth.sol, monkedao.sol, tipfi.sol, etc.). Claims open May 13, 2025, at 15:00 UTC and close August 13, 2025.

  • LFG Campaign (20%): 2 billion tokens for participants in the SNS LFG Campaign, a community initiative with missions, rewards, and collaborations launching post-Genesis Airdrop in Q2 2025.

• 20% Future Emissions and Community (2 billion tokens): Allocated for ongoing community rewards and emissions, unlocked linearly over 4 years from the token generation event (TGE).

• 26.25% Ecosystem Growth (2.625 billion tokens): Funds ecosystem development, also unlocked linearly over 4 years.

• 5% Liquidity Provision (500 million tokens): Supports trading on Solana DEXs like Jupiter, with potential centralized exchange listings based on demand.

• 8.75% Core Contributors (875 million tokens): Locked for 4 years (12-month cliff, 3-year linear vesting) to incentivize the SNS team.

The airdrop mechanism emphasizes accessibility. Eligible .sol domain holders and FIDA holders can check eligibility on SNS’s official claim page, connecting their Solana wallet to claim tokens. The LFG Campaign will involve tasks, leaderboards, and collaborations with Solana projects, encouraging broader participation. The phased approach (Genesis Airdrop, LFG Campaign, future emissions) aims to sustain engagement and prevent immediate sell-offs, with unclaimed tokens potentially redistributed to community initiatives.

Impact and Future Outlook

The SNS token launch, which replaces FIDA, has caused a significant decline in FIDA’s price. As of May 7, 2025, FIDA trades at approximately $0.06348, down 12.7% in 24 hours and 25.1% over the past week, with a market cap of $62.9 million. Trading volume in 24 hours surged to $40.8 million, indicating heightened selling pressure as investors shift focus to SNS.

The SNS token launch could potentially increase .sol domain adoption and on-chain activity, benefiting projects like Jupiter and Metaplex. If the SNS airdrop and LFG Campaign succeed, Solana Name Service could solidify its role as Solana’s premier identity protocol, rivaling Ethereum’s ENS. The 40% airdrop and 20% future emissions ensure long-term community incentives, while ecosystem growth funds support dApp integrations. As SNS also rolls out its claim process and LFG Campaign, the crypto community awaits clarity on how .sol domain holders will shape Solana’s Web3 identity landscape.