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Founder of the decentralized derivative trading protocol, Synthetix (SNX), Kane Warwick, has presented twelve pivotal governance proposals to advance the platform. Notably, these proposals include a 3:1 split of the SNX token, followed by a subsequent repurchase and burn.
SNX Proposed to be Split and Burned in a Buyback
In his blog post titled “The State of Synthetix”, Warwick outlined the major governance proposals that aim to enhance the capabilities of Synthetix and boost community participation. The most critical governance proposal he presented is the “SNX Split and Repurchase” initiative. Warwick proposed splitting SNX at a ratio of 3:1, followed by a repurchase and subsequent burning of the split tokens using the revenue from the Synthetix Treasury. He explained that with a 3:1 split, we would have roughly 90 million additional tokens for repurchase and burning, amounting to a market price of 60 million dollars.
Warwick further indicated that the required funds for burning all these tokens would come from the treasury fee yield. Another governance proposal named “core participant alignment” suggests distributing Synthetix Network Tokens (SNX) as bonuses every three months as an incentive for those contributing to the project. Warwick argues this strategy could secure their commitment to the platform’s success.
He also recommended allocating SNX for trading incentives to boost transaction volume and market activity on the Synthetix platform. Additionally, Warwick proposed rewarding stakers with SNX to increase their participation and commitment to maintaining platform stability.
Suggested Distributing Quarterly Bonuses
The founder clarified that his intention behind these proposals is to stimulate a conversation. He hopes that these discussions will keep the Synthetix community engaged about potential directions for the platform. The presented proposals will be voted on by the Treasury Council (TC), the four-member governance body of Synthetix, responsible for resource allocation for the protocol’s expansion and growth. All these proposals are currently conceptual and need voting for progress. Warwick commented, “None of the proposals have passed a Treasury Council vote yet, but most have seen support within the council.”
Currently, Synthetix provides decentralized derivative trading in liquidity pools with over $420 million in total locked value (TVL) on Ethereum and Layer 2 network, Optimism.
