Synthetix Community Approves Proposal to Halt SNX Inflation
Members of the Synthetix derivatives protocol community have approved a governance proposal, SIP-2043, which aims to stop the inflation of the SNX token. This decision opens up opportunities for new strategies, including token buybacks and burns that will be implemented in the upcoming Andromeda software release.
End of Inflation Benefits Stakers on Synthetix
With the end of inflation, stakers on Synthetix will no longer need to claim their weekly inflationary token rewards. Instead, the protocol will focus on utilizing trading fees to facilitate token buybacks and burns. This strategy aims to decrease the token supply by using fees generated within the protocol to purchase and subsequently burn SNX tokens.
Positive Response from Synthetix Token
The Synthetix token has responded positively to this development, reaching a yearly peak with its price climbing to $4.91, according to CoinMarketCap data. Over the past month, the token has experienced a 65% surge and an impressive 150% increase over a year. However, its value remains 82% lower than its all-time high in February 2021.
Circulating Supply and Market Capitalization
The Synthetix token currently has a circulating supply of around 300 million, resulting in a fully diluted market capitalization of $1.53 billion. The platform itself facilitates decentralized derivatives trading and boasts liquidity pools with a total value of over $890 million across the Ethereum and Optimism Layer 2 networks.
Hot Take: Synthetix Adopts Buyback and Burn Strategy
The Synthetix derivatives protocol community has approved a governance proposal to halt the inflation of the SNX token. This decision introduces new strategies, such as token buybacks and burns, which will be implemented in the future. With the end of inflation, stakers on Synthetix will no longer need to claim their weekly rewards. Instead, the protocol will utilize trading fees to facilitate buybacks and burns, aiming to decrease the token supply. The Synthetix token has responded positively to this development, reaching a yearly peak in price. However, its value still lags behind its all-time high. The platform enables decentralized derivatives trading and holds significant liquidity across multiple networks.
By
By
By
By
By