Solana Name Service airdrops 40% of token supply after FIDA tokenomics deemed unsustainable

The Solana Name Service said its token generation event went live on Tuesday, with 40% of its supply earmarked for "early and new supporters."

According to a post to X, users must connect their wallets holding ".sol domain(s) " to claim the SNS tokens. The project also said tokens need to be claimed by August 11. Solana Name Service's website says it has 127,000 .sol holders.

It appears the new SNS token is meant to replace the previously issued FIDA token. The Solana Name Service was originally promoted by Bonafida, which this month said FIDA could no longer "provide the alignment or incentive model that .sol domain holders" require. Bonafida added that FIDA's "tokenomics are not sustainable."

Solana Name Service is a "decentralized naming protocol" on the Solana blockchain meant to streamline user interactions across the web3 ecosystem.

"By mapping complex blockchain addresses to human-readable names like 'your name.sol,' SNS aims to make blockchain technology more accessible to a broader audience," according to the Solana Name Service whitepaper.

"Traditional blockchain addresses, characterized by extended alphanumeric sequences, pose significant challenges to usability and accessibility," the whitepaper also said. "Their inherent complexity increases the likelihood of transactional errors, such as incorrect address entries, which may result in the permanent loss of assets."

Earlier this month, the project said both that "20% of the total supply" had already been "spoken for" and that Solana Name Service had a "new team, a new mission and a clear focus." The announcement was made the same day Bonafida said FIDA's tokenomics were unsustainable.

As of 1:40 p.m. SNS was changing hands at $0.0048 and had a market cap of over $12 million, according to CoinMarketCap.