Synthetix: Soon an SNX token burn?

To survive in a market that is both evolving and competitive, DeFi projects must put in place effective development strategies. With that in mind, Synthetix creator Kain Warwick presents 12 suggestions for improvement. The token burn and the redemption function (or buyback) are part of it.

https://twitter.com/TheDailyHodl/status/1661492716570841088

The Synthetix Protocol

Synthetix is a decentralized finance project (Challenge). Built on the Ethereum network, the protocol allows its users to issue and trade decentralized synthetic assets. Synthetix is ​​also able to generate new assets using the “collateralization” process.

The Synthetix protocol was launched in 2018 by Kain Warwick. Currently, he is among the most efficient platforms of the decentralized finance ecosystem. Kwenta.io, for example, is one of the platforms powered by Synthetix. It allows its users to trade cryptocurrencies, fiat currencies as well as other leveraged assets.

Lately, Synthetix supports perpetual futures contracts (perps) following:

• Pepe Coin,
• Sui Network,
• Blu,
• XRP,
• Polkadot,
• Floki Inu,
• Injective Protocol.

Even today, its founder multiplies the innovations in order to boost the project. In a new blog updateKain Warwick presented 12 suggestions for improvements of the Synthetix protocol.

Soon buyback and token burn functions

Warwick is aware that Synthetix still needs some inflation for incentives. It is the same for pool liquidity. This is why he believes that token burn and buyback are essential. “If Synthetix does a 3:1 split, there will be around 90 million more tokens to buy back and burn with a market price of $60 million”he explained.

For now, the 12 proposals put forward by the founder of Synthetix remain in the conceptual phase. Nothing is confirmed yet! Indeed, each of these proposals will have to pass a vote by the Treasury Board before the implementation phase on the protocol.