Bonfida (FIDA): Establishing Your Identity in the Web3 World
An on-chain identity is a unique way to identify yourself as you interact with decentralized apps (DApps). Not only does an on-chain identity allow you to transact in a decentralized and permissionless way, but itâs also your gateway to systems such as decentralized autonomous organizations (DAOs), where you can use it to influence governance.
To facilitate the creation and use of human-readable on-chain identities, Bonfida has built a blockchain-based identity infrastructure on Solana (SOL) thatâs home to the Solana Name Service (SNS). Users can access various web3 name service components. Furthermore, Bonfida has integrated the Wormhole bridge to enhance the interoperability of domain names across different web3 platforms.
Letâs look at Bonfida and its innovative approach to helping you build an on-chain reputation.
Key Takeaways:
Bonfida, rebranded as Solana Name Service (SNS), provides a unique approach to web3 digital identities for transacting on Solana and other chains through the use of human-readable domain names.
Bonfida has integrated with Wormhole to ensure interoperability of its domain names across multiple blockchains and web3 platforms.
Solana Name Service's native token, FIDA, is a utility token that presents holders with multiple privileges, and will eventually include governance power. FIDA is available as a Perpetual contract on Bybitâs Innovation Zone.
What Is Bonfida (Solana Name Service)?
Bonfida (otherwise known as Solana Name Service) is a blockchain naming service and domain provider on Solana thatâs designed to provide a user-friendly platform for creating and building your web3 on-chain identity. Having officially rebranded to Solana Name Service (SNS) in July 2024, Bonfida leverages Solanaâs low latency and affordability in order to provide an innovative domain management and naming service.
Founded by computer engineer David Ratiney, Bonfida was born after Ratiney came across Solana and the Serum DEX. He believed a platform to make products and applications more accessible was needed.
Once you acquire a .sol domain, Bonfida works on cross-chain interoperability through integration with Wormhole to allow you to transact with a single domain name across multiple chains and platforms. Moreover, you can link your SNS domain to your X (formerly Twitter) handle so you can send and receive assets through X.
The FIDA token is at the heart of the Bonfida ecosystem, where it provides access to a privileged fee structure on Solana, and discounts when registering .sol domain names.
How Does Bonfida Work?
Bonfida (SNS) doesnât operate solely as a standalone name service. With your decentralized domain name, you can transact seamlessly on Solana, including with popular crypto wallets supported by the blockchain.
The Bonfida SNS domain is hierarchical, with the Root domain being positioned at the top. The Root domain is parent to the .sol top-level domain (TLD) and Twitter TLD. Below the .sol TLD and Twitter TLD are their respective âchildrenâ (subdomains). Upon registering your Twitter/X handle, it becomes the subdomain of the Twitter TLD.
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Source: bonfida.org
To facilitate reselling domains on third-party NFT marketplaces, SNS domain names are tokenized as NFTs. In order to enhance efficiency and ensure a seamless experience for domain traders, Bonfida has introduced the SNS-Optics feature, which aggregates all the major marketplaces where SNS domains are available and their listed prices/offers.
Additionally, to ensure a more âhumanâ experience when transacting on Solana, transactions on Solscan can be tracked using domain names, rather than the long string of alphanumeric characters commonly used on other sites, which can be cumbersome to memorize.
SNS also has an anti-squatting feature that helps prevent your domain name from being victimized or impersonated by scammers, especially for trademarks or well-known brands. Ideally, users are encouraged to reserve domains early or at the conception of their ideas. Bonfida has allocated over $500,000 to an anti-squatting fund that will be used to buy back squatted/stolen domain names for established identities.
Collection Bidding
Collection bidding is an SNS feature that facilitates the easy and quick selling of .sol domains specific to a category. It was introduced to increase liquidity for domain name sales and facilitate fair distribution of domain names, leading to a healthier ecosystem.
If you want to place a bid, you need to go to the SNS website, browse a category, make an offer and then wait for the deal to be finalized. As a domain seller, you can instantly sell your domain by accepting an offer made by bids on your category.
From Staking to Liquidity Incentive
On May 5, 2023, Bonfida eliminated its FIDA staking system in favor of a new liquidity incentives program that will benefit the whole SNS ecosystem. The new program was designed to solve the challenges of suboptimal governance voting, and incentivize active participation in the ecosystem.
Bonfidaâs liquidity incentives program rewards users for providing real liquidity in different categories. Bidders who place bids close to the floor price also receive rewards. The program is meant to ensure both the fair distribution of .sol domains across all categories and a more engaged ecosystem.
How to Buy a Bonfida Domain
You can buy an existing domain from NFT marketplaces, such as Magic Eden and Hyperspace, through an auction or at a fixed price. Alternatively, you can register a new one on Solana Name Service at a fixed price based on character length.
Once youâve purchased the domain, it will automatically be linked to your Solana wallet address, after which you can use the .sol address to transact. The .sol domain doesnât attract any fees, and it belongs to you for life. It can also be sent to other wallets at a low gas fee.
What Is the Bonfida Token (FIDA)?
FIDA is the native token for the Solana Name Service protocol. A maximum supply of 1 billion FIDA tokens were distributed in December 2020, as follows:
Locked Seed Sales: 9% (locked for 1â4 years and released linearly, with the last to be unlocked in December 2024)
Liquidity: 2% (released immediately)
IEO: 0.6% (released immediately)
EcoSerum Allocation: 10% (2% immediately sent to SRM yield, 8% locked for 1â4 years)
Bonfida Contributors: 10% (Reserved for bonuses and grants with a lock-in period of 1 to 4 years)
Ecosystem Development: 68.4% (locked for 1â4 years)
As a utility token, FIDA plays various roles in the Bonfida ecosystem. FIDA token holders receive certain privileges on SNS, such as access to reduced fee tiers when transacting domain names and a 5% discount when registering domain names. Another crucial role of FIDA is to power the platformâs Buy & Burn program. FIDA is also envisioned as being part of Bonfidaâs improved governance system, which combines quadratic voting.
Bonfidaâs Buy and Burn Program
Almost 100% of the fees collected from registering SNS domain names power the Bonfida Buy & Burn program. Once FIDA tokens have been collected from these purchases, theyâre burned and removed from the circulating supply, thus enhancing FIDA's long-term value. The buy and burn is done daily at a specific time, and only a specific amount of FIDA can be burned daily.
Where to Buy Bonfida (FIDA)
You can buy FIDA on Bybit as the FIDAUSDT Perpetual contract, with leverage of up to 12.5x. FIDA has been listed on Bybitâs Perpetual Trading Innovation Zone, a program that lists Perpetual contracts handpicked by Bybit's professional team.
This program gives you direct and transparent access to innovative projects with the potential for both higher returns and associated risk. Due to the risky nature of such projects, trading fees are comparatively high.
Bonfida (FIDA) Price Prediction
As of Oct 10, 2024, FIDA is trading at $0.23, a 98.8% drop from its all-time high (ATH) price of $18.77 on Nov 3, 2021, and a 105.8% increase from its ATL of $0.11 on Dec 22, 2020.
Price prediction experts are relatively bullish on the future price of FIDA. According to the CoinCodex price prediction platform, FIDA may reach a yearly high of $1.11 in 2025 and $1.50 by 2030. Another price prediction site, DigitalCoinPrice, shares almost similar insights. Its forecasting experts believe that FIDA will hit a maximum price of $0.66 in 2025, and gradually rise to $1.93 by 2030.
While these price predictions are bullish, they arenât financial advice and donât guarantee the future price of FIDA. We highly recommend that you do your own research before investing in FIDA or any other cryptocurrency.
Closing Thoughts
Bonfida, also known as Solana Name Service or SNS, provides an innovative approach to meeting the ever-rising need for web3 digital identities. Due to SNSâs interoperable and human-readable domains, users can rely on the platform to transact and carry out other web3 activities in a permissionless manner. The SNS token, FIDA, is critical in powering this platform and is therefore a cryptocurrency to watch as this niche continues to rapidly grow.
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