Synthetix token reacted with growth to the initiatives of the founder


The founder of the Synthetix DeFi platform, Kane Warwick, submitted 12 suggestions to the community to improve the project in order to bring it to the next stage of development.

In his blog, he clarified that a number of initiatives are still conceptual ideas, while some have been formalized into more specific plans. Some ideas have already received the support of the Treasury Council (TC), others have not even been discussed.

One of Warwick’s proposals involves buying back and burning 90 million SNX tokens to offset inflation.

“Where does the money come from to burn these tokens? Income from treasury fees. Based on recent figures, TS earns about $5 million a year. If 100% of this goes to buyback, it will take about ten years to complete,” he wrote.

In August 2022, Warwick submitted a governance proposal that included a 300 million SNX issuance cap to move towards a deflationary model. According to him, “fortunately”, the community voted against, because the project was not ready for such a move.

A number of other initiatives by the founder of Synthetix are aimed at additional incentives for project participants, application developers, stakers and traders with SNX tokens from various sources. This is intended to contribute to the improvement of the protocol, the expansion of the ecosystem and the growth of trading volumes.

In order to attract new customers to SNX staking, Warwick proposed to launch an easier-to-use passive pool.

Data: Warwick’s blog on the Mirror platform.

Against the background of the publication of the founder of the project, the price of SNX added 3.6% per day against the market movement. At the time of writing, the token is trading around $2.54. The market supply is ~318.6 million SNX, capitalization is approximately $806.3 million.

Data: CoinGecko.

According to DeFi Llama, the value of assets locked in Synthetix is ​​$428.13 million.

Recall that in February 2021, the project raised $12 million in funding through the sale of SNX to investors.

In February 2023, Synthetix launched the third version of the protocol on the Ethereum mainnet and Optimism layer 2 network.

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