The Solana ecosystem witnessed a significant evolution in May 2025 with the introduction of the Solana Name Service (SNS) token generation event (TGE). This launch included a major airdrop of the new SNS token, designed to better serve the growing community of .sol domain holders and replace the previous FIDA token model.
Eligible users—including current .sol domain holders—can claim their tokens through the official portal before the August 11 deadline. With over 127,000 .sol domain holders registered, this airdrop represents not just a reward for early adopters, but a foundational shift in how the naming service is governed and incentivized.
Why FIDA Was Replaced by SNS
The former token, FIDA, was originally developed as part of the Serum decentralized exchange ecosystem. While it served its initial purpose, it failed to align with the specific needs of the .sol domain community. Over time, as the Solana Name Service grew, FIDA’s tokenomics proved unsustainable and inadequate for encouraging user participation or supporting decentralized governance.
Key reasons for the transition include:
- Lack of Incentives: FIDA did not effectively reward .sol domain holders or encourage active involvement.
- Misaligned Governance: The token was not designed to facilitate community-led decision-making for the naming service.
- Economic Limitations: Bonafida, the team behind FIDA, acknowledged that the token could not provide the coordination or incentives required for the expanding SNS ecosystem.
Unsurprisingly, the market responded to the announcement of the new SNS token with a sharp decline in FIDA’s value—falling over 13% as confidence shifted toward the new model.
Understanding the New SNS Tokenomics
The Solana Name Service is a decentralized naming protocol that maps complex wallet addresses to simple, human-readable .sol domains. This dramatically improves user experience across Web3—making transactions, dApp interactions, and wallet management more intuitive and secure.
The SNS token is central to this upgraded system, with a fixed total supply of 10 billion tokens. Here’s how the distribution breaks down:
40% of the supply (4 billion SNS) is allocated to the airdrop:
- 20% for existing .sol domain holders
- 20% reserved for the “LFG Campaign” to drive future engagement
- 5% is dedicated to ecosystem partners
- The remaining tokens support liquidity, team incentives, investor allocations, and future ecosystem growth
Out of the total supply, 25% will be in circulation initially. The SNS token will be used for:
- Community governance and voting
- Incentivizing domain-related activities
- Supporting ecosystem development
👉 Explore the official claim portal for eligible users
The Broader Impact on the Solana Ecosystem
The introduction of SNS is more than a token upgrade—it represents a maturation of Solana’s infrastructure. By simplifying user interactions through readable domain names, SNS reduces errors and enhances security for everyday blockchain activities.
Potential impacts include:
- Increased liquidity and trading volume on Solana DEXs
- Greater adoption of .sol domains across dApps, wallets, and DeFi platforms
- Enhanced interoperability and user control over digital identity
With a renewed team and a clearer mission, SNS is positioned to support a more scalable and community-oriented naming service. However, users should remain cautious about security best practices—such as avoiding phishing sites and safeguarding private keys—even as the ecosystem becomes more user-friendly.
Frequently Asked Questions
What is the Solana Name Service (SNS)?
SNS is a decentralized domain name system on the Solana blockchain. It allows users to replace long wallet addresses with short, readable .sol names, making crypto transactions simpler and less error-prone.
Who is eligible for the SNS airdrop?
Current .sol domain holders are eligible for the first airdrop phase. Approximately 275,000 wallets qualified for the initial distribution.
How do I claim my SNS airdrop?
Visit the official SNS claim page before August 11, 2025, and connect your wallet. If you hold a .sol domain, your tokens should be available for claim.
What is the total supply of SNS tokens?
The total supply is capped at 10 billion SNS tokens. 40% was allocated to the airdrop, and 25% will be in circulation at launch.
Why was FIDA replaced?
FIDA was not designed for the SNS ecosystem and lacked sustainable incentives for domain holders. The new SNS token supports improved governance and community rewards.
Is my .sol domain still secure under the new system?
Yes. The transition to SNS does not affect the ownership or security of your domain. You remain in full control of your digital identity on Solana.