FIDA Falls 13% as Solana Name Service Launches SNS Token

• Solana Name Service shifts to new SNS token to better align with .sol holders.
• SNS token aims to correct FIDA’s unsustainable tokenomics and incentivize users.
• FIDA drops 13.57% following SNS token launch announcement, market cap at $71M.

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Why SNS is Replacing FIDA: Addressing Outdated Tokenomics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…

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