Solana Name Service (SNS), a blockchain-based domain naming platform built on Solana, has revealed plans to distribute 40% of its new token supply to the community.
The distribution will occur in two parts: 20% will go to early supporters during the initial airdrop, while another 20% will be reserved for those who participate in an upcoming campaign titled “LFG Campaign.”
SNS is aiming to reward its early users and build momentum with its upcoming Token Generation Event (TGE). On the day of the TGE, the platform will airdrop 20% of its token supply to qualifying early participants. A second round of distribution will allocate another 20% to users involved in the platform’s future promotional effort, the LFG Campaign. While details on how to qualify for the campaign have not yet been shared, SNS has emphasized its focus on community engagement.
Breakdown of token supply
The tokenomics structure leaves 25% of the total token supply circulating at launch. Beyond the 40% community airdrop, another 26% is set aside for ecosystem growth, 20% for future emissions, 5% for liquidity needs, and around 9% for the team and early investors. This approach shows a clear intent to prioritize long-term development and community involvement over immediate market flooding.
SNS works in a similar way to Ethereum Name Service (ENS), allowing users to register blockchain-based domain names. However, SNS is still much smaller in scale. It currently has about 126,000 holders and 277,000 registered domains, while ENS boasts over 1.7 million active domains and nearly 800,000 participants.
Still, SNS is making a name for itself through its aggressive and generous token distribution plan.
Market reaction and history
This will be SNS’s second token release. The first was FIDA, launched in December 2020. FIDA has recently seen a price drop of over 30%, possibly due to the anticipation of the new token and market dilution concerns. Despite this, SNS continues to move forward with its Web3 identity solutions for the Solana ecosystem.
Those who have interacted with the platform in the past may be eligible for the initial airdrop. As the LFG Campaign approaches, users are encouraged to follow SNS channels for more updates on how to qualify for the second 20% share. With its user-first token model, SNS is positioning itself as a key player in the blockchain naming space.