The Solana Name Service (SNS), a decentralized naming protocol on the Solana blockchain, launched the SNS token, aiming to decentralize governance and align the project’s direction more closely with its community of users.
The SNS token boasts a total supply of 10 billion, and crucially, it empowers .sol domain holders with voting authority on protocol enhancements, development priorities, and ecosystem incentives. Specifically, of this supply, they allocated 40% to current .sol holders, Solana-based communities, and affiliated partners, with particular emphasis on rewarding early participants.
Solana Naming Protocol Introduces Governance Token Featuring 10 Billion Total Supply
The project set aside an additional 20% for upcoming community incentives, while it intends 26.25% to support ecosystem expansion via collaborations and new initiatives. Core contributors received 8.75%, which will remain locked for four years, and the project designated 5% for allocation to liquidity pools.
Essentially, SNS aims to make blockchain easier to use. It does this by changing complex wallet addresses into simple “.sol” names, like “username.sol.” In turn, these names act as digital IDs, making transactions smoother, hosting decentralized websites, and connecting easily with Web3. Furthermore, subdomains add more features, helping community groups, organizations, and managing real-world assets in a decentralized way.
Solana Name Service explained that major benefits include lifetime ownership of domains, minimal transaction costs enabled by Solana’s infrastructure, and smooth integration across the ecosystem. To date, users have registered more than 270,000 .sol domains, and 150 projects have utilized the protocol to offer more accessible blockchain interactions.
As the white paper outlines, the token’s governance structure permits holders to cast votes on various proposals, such as funding distribution and technical improvements. SNS intends to cultivate a self-sustaining ecosystem where token-based rewards linked to user activity and contributions encourage active involvement.
Upcoming initiatives will involve a phased distribution of tokens to eligible users, accompanied by comprehensive instructions to support community engagement. The rollout emphasizes SNS’s transition toward a decentralized framework, with a focus on sustainable growth and innovation led by its user base.
