Kane Warwick, founder of the DeFi platform Synthetix, has presented 12 proposals for improving the project to take it to the next stage of development.
— kain.eth (@kaiynne) May 23, 2023
In his blog post, he clarified that several initiatives remain conceptual ideas, some have been formulated into more concrete plans. Some ideas have already received support from the Treasury Council (TC), others have not even been discussed.
One of Warwick’s proposals envisages a buyback and burn of 90 million SNX tokens to offset inflation.
«Where will the money come from to burn these tokens? Revenue from treasury fees. Based on the latest figures, the TC earns around $5 million a year. If 100% of that is allocated to the buyback, it would take about ten years to complete», he wrote.
In August 2022, Warwick introduced a governance proposal that envisaged a cap on the issuance of 300 million SNX to move to a deflationary model. By his own admission, «fortunately», the community voted against it, as the project was not ready for such a move.
A number of other initiatives by Warwick aim to further incentivize project participants, application developers, stakers, and SNX traders with SNX from various sources. This is intended to promote protocol improvements, expand the ecosystem, and lift trading volumes.
To attract new users to SNX staking, Warwick proposed launching a more user-friendly passive pool.
In the wake of the founder’s publication, SNX’s price over the past 24 hours rose 3.6% against the market trend. At the time of writing, the token trades around $2.54. The circulating supply is about 318.6 million SNX, with a market capitalization of around $806.3 million.
According to DeFi Llama, the value of assets locked in Synthetix totals $428.13 million.
Back in February 2021, the project attracted $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 the second-layer network Optimism.