Solana Name Service Launches SNS Token, Keeps 40% for Airdrop

The Solana Name Service (SNS), the decentralized domain provider behind .sol addresses, has officially launched its own token, aptly named SNS. And the biggest buzz? A whopping 40% of the total token supply is being given away through an airdrop.

What’s Changing?

Previously known as Bonfida, the team behind SNS had also launched FIDA, a token that was mainly tied to the Serum DEX. But as the focus shifted toward decentralized identity and domain names on Solana, the team decided it was time for a token that better fit the future of the .sol ecosystem.

Enter: the SNS token.

This new token is meant to directly support the community of .sol domain holders, builders, and early adopters. The team says SNS will create a more sustainable incentive system—one that puts domain users first.

Breaking Down the Tokenomics

According to the official announcement, the total supply of SNS is capped at 10 billion tokens. Here’s how it’s being allocated:

• 40% for the airdrop
• 26.25% for ecosystem development
• 20% for community initiatives in the future
• 8.75% for project values and contributors
• 5% for liquidity provision

The 40% airdrop is the clear headliner here. Half of this—so, 20% of the total supply—is reserved specifically for .sol domain holders who stuck with the project through market ups and downs. The rest will go to early supporters, active community members, and developers who have built with SNS over time.

How to Claim the Airdrop

If you’ve bought a .sol domain in the past (especially before 2022), you might already be eligible. SNS has set up a tool on sns.sol to check your wallet and claim your tokens. Several users on X (formerly Twitter) have already reported getting surprise allocations—some tied to domains they registered years ago.

“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 one excited user.

The Good and the Risky

While the massive airdrop is exciting, there are risks too. With 40% of the supply hitting the market for free, the possibility of mass sell-offs is real, especially from users looking to cash in right after listings.

That much free supply? Yeah, it could trigger some early sell-offs—ZORA-style. To avoid that mess, SNS is cooking up liquidity plans and giving holders more reasons to stick around long-term.

If SNS can successfully integrate with Solana’s wider decentralized identity ecosystem, that could also help drive more demand and reduce selling pressure.

The launch of the SNS token marks a fresh chapter for Solana Name Service, one that’s firmly focused on rewarding the community and growing the .sol domain space. By realigning with its users and setting up a strong tokenomics model, SNS is positioning itself as a key player in the decentralized identity world on Solana.

But as always in crypto, users should keep an eye on how the market responds, especially in the first few weeks after the airdrop.

Also Read: Solana’s Emergency Patch Sparks Decentralization Debate