FIDA Falls 13% as Solana Name Service Launches SNS Token

The Solana Name Service (sns.sol), widely known by its former name Bonfida, is making a major change. It announced plans to launch a new token called SNS. This new token will replace the existing FIDA token.

The team says this shift is designed to better match the interests of .sol domain holders with the project’s future goals.

Why SNS is Replacing FIDA: Addressing Outdated Tokenomics

The team behind sns.sol explained why a new token is needed. They stated that while FIDA initially served its purpose within the Serum decentralized exchange ecosystem, its design no longer supports the current vision of SNS. Consequently, the introduction of the SNS token seeks to bridge that gap and establish stronger community incentives.

According to the announcement, Bonfida’s early tokenomics centered around Serum, with FIDA integrated closely into that trading environment. However, as time progressed, the disconnect between FIDA’s original objectives and the growing needs of the .sol community became more pronounced.

The team found that FIDA’s distribution model did not properly reward .sol domain holders. The token system that once helped growth eventually started to limit it. After much thought, the team decided a new SNS token was vital to unlock the platform’s full potential.

Aligning Incentives with the SNS Community Vision

Besides addressing structural issues, the launch of SNS represents a broader effort to unite and empower the .sol domain ecosystem. The team emphasized that FIDA’s utility was tied to a different user base, leaving .sol domain users underrepresented.

They also noted that FIDA’s incentive structures were not sustainable for the long-term growth of the protocol. The new SNS token is designed specifically for the domain name ecosystem, aiming to correct these past imbalances.

The upcoming SNS token also comes with a promise of being more inclusive. The team plans to share details in the coming weeks about how past, present, and even future .sol domain users can get involved in the new token’s distribution.

This approach is meant to reward loyal users and also attract new people to the platform. By directly involving domain holders with the SNS token, the project hopes to build a more engaged and aligned community.

FIDA Token Price Declines Sharply on SNS News

The announcement of the new SNS token has had a significant and immediate impact on the FIDA token’s market price.

Following the news, FIDA’s price dropped sharply by over 13.57%, falling to $0.064644. Its market capitalization currently stands around $71 million.

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