Popular decentralized finance (DeFi) platform Synthetix (SNX) founder, local SNX as the protocol generates revenue from new products altcoin proposed limiting its supply to a fixed 300 million.
Synthetix founder Kain Warwick explained in a management proposal Friday that the initial rationale for maintaining a sustained inflationary supply for the SNX altcoin is now outdated as the protocol is now generating “meaningful” returns from its underlying swap and perpetual products.
It is planned to limit the number of coins to 300 million
The founder said in his statement:
“The point of inflation was to pave the way for the network. It did this very effectively. The fact that we are only a few weeks away from the 300 million mark is reason enough to make that change now.”
Synthetix, an Ethereum-based exchange and asset platform, was one of the first known DeFi applications.
Specializing in issuing and creating synthetic tokens, Synthetix recently introduced its atomic swap product, which allowed its daily trading volume to exceed $200 million shortly after launch.
The data is the product of the atomic swap. cryptocurrency shows that its platform has contributed to earning over $158,000 weekly wages. Some of these fees are distributed to users.
Synthetic assets are created when users deposit collateral using SNX and print a synthetic asset against it, earning rewards on the volume of SNX they deposit with Synthetix for specials or other liquidity pools.
“Continuous Distribution of Coins to Users Puts Selling Pressure on SNX Altcoin”
However, Warwick pointed out that the constant creation and delivery of SNX to platform users creates sales pressure.
Warwick continued his statement on the subject as follows:
“While inflation redistributes ownership of the network to stakers, it also reduces the dollar-denominated fee return per SNX (paid in sUSD) over time.
The problem with this is that it puts constant downward pressure on the SNX token price.”
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!