What will happen next with Synthetix?

Founder of Synthetix Kain.eth has posted a discussion on certain proposals that have received widespread support from the Synthetix Treasury Committee, including adjusting the reward system for core contributors, improving the SNX staking process, adjusting SNX staking rewards, splitting SNX 3:1, and conducting a buyback.

Consistency among core contributors: This may involve the philosophy of equity distribution for start-up companies or DAO token distribution, but I believe it is a key point. At Synthetix, consistency is crucial because there is almost no hierarchy, and self-motivated individuals are more attracted to this atmosphere. However, we must also ensure that we maintain financial consistency. I suggest setting aside SNX as a bonus every quarter, with the bonus distribution determined by the TC and taking into account CC feedback on its peers’ impact on the protocol. This will ensure merit-based fair distribution.

Trading incentives: Although OP incentives have successfully increased trading volume, SNX incentives may produce a more impactful feedback loop. Especially since incentives will be done through hosting SNX, this should bring traders into SNX staking. Ideally, over time, 5-10 million SNX should be allocated to this incentive program.

Passive SNX staking: A passive staking pool can be created to work with active SNX staking. New stakers can try staking without facing too many challenges and better understand Synthetix. Think of it as a free value-add mode, where “price” is risk and complexity, and reducing these while paying lower yields may attract more stakers. The revenue should be dynamically calculated based on the ratio between active and passive stakers, with the upper limit of passive staking being about 10% of the fee, initially paid by the Treasury, possibly in SNX, but preferably in sUSD.

SNX 3:1 split and buyback: To address inflation issues, if we do a 3:1 split, we will have about 90 million additional tokens to buy back and burn at a market price of $60 million. The cost of burning tokens will be borne by Treasury revenue. Based on recent revenue, TC’s annual income is about $5 million, which will take about ten years if 100% is allocated to buybacks. If trading volume increases in the coming years, this timeline will be significantly shortened.

Reference: https://mirror.xyz/kain.eth/EB9DQldVEb0F74-LmrVau6YbjEtr8dsj1qVn6muYuXw

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