Kane Warwick, the founder of Synthetix, a decentralized derivatives trading protocol, has put forth a series of significant governance proposals aimed at propelling the platform into its next phase. These proposals, outlined in Warwick’s “State of Synthetix” post, aim to enhance Synthetix’s capabilities and encourage greater participation from its community members.
One of the key propositions introduced by Warwick is the “SNX split and buyback” proposal. He suggests a 3:1 split of SNX tokens, followed by a buyback and subsequent burn using the Treasury’s fee yield. This would result in approximately 90 million additional tokens for buyback and burn, with a market price of around $60 million. The funds required for burning these tokens would be sourced from the treasury fee yield.
Another notable proposal is the implementation of quarterly bonuses for project contributors, known as the “core contributor alignment.” By distributing Synthetix Network Tokens (SNX) as quarterly bonuses, Warwick aims to incentivize and secure ongoing commitment from contributors, ensuring their dedication to the protocol’s success.
Warwick also suggests allocating SNX tokens for trading incentives to stimulate trading volume and foster increased market activity on the Synthetix platform. Additionally, he proposes providing SNX tokens to stakers as a means of boosting their involvement and commitment to maintaining the platform’s stability.
The Synthetix platform facilitates decentralized derivatives trading through its liquidity pools, which currently have a total value locked (TVL) exceeding $420 million on the Ethereum and Optimism Layer 2 networks.
Warwick’s intention in presenting these proposals is to initiate a dialogue and keep the Synthetix community informed about potential directions for the platform. The proposals will be subject to a vote by the Treasury Council (TC), a four-member governance body responsible for resource allocation and facilitating the protocol’s expansion and growth.
It is important to note that these proposals are currently in the conceptual stage and require votes to progress. Warwick emphasized that nothing has been confirmed by a Treasury Council vote yet, but many of these proposals have already garnered support within the council.
As Synthetix moves forward with its governance process, the decisions made will shape the platform’s future trajectory. The active involvement and participation of the Synthetix community in this voting process will be crucial in determining the direction and evolution of the platform, ensuring it remains at the forefront of decentralized derivatives trading.
Source: https://azcoinnews.com/synthetix-founder-proposes-large-scale-buyback-and-token-burn-for-snx-tokens.html
