What for Synthetix (SNX) After the Recent SIP-276 Proposal?
Synthetix seems primed for breakouts following a new announcement. The network introduces a proposal to cap the token’s (SNX) supply as a memorable 300 million. Surprisingly, that follows two failed trials to amplify the amount staked SNX (Messari reports).
The proposals have triggered an increase in SNX’s inflationary rewards, which welcomed downside pressure on the asset’s price. The Synthetix V3 launch will present new staking incentives. That will match Synthetix founder Kain Warwick’s goal of creating a stable revenue-generating platform that would share revenues with token stakers.
Attractive Talk, Attractive Reward
The Synthetix platform has witnessed a colossal surge in volume following the latest integrations between Atomic Swap, Kwenta, and 1inch. Recent data indicate that daily trading fees amounted to more than $362K. SNX stakers received some of the amounts as sUSD rewards.
Despite the ‘unusual’ trading volume increase, Synthetix has seen a surge in latency attacks. Though they aren’t positive, the attacks have triggered an uptick in sUSD staker rewards. That could attract market players to keep staking after the conclusion of inflation rewards.
An anonymous crypto fan on Twitter, nullpackets, suggested that Synthetix should collaborate with Chainlink to create a secure chain. He believes such a move would bolster Synthetix to form a stable revenue-creating platform through continued sUSD reward distribution.
Notable Red Flags
Though the network attempts to modify its reward approach, some risks continue to restrict sustainable growth. Questions linger about whether Synthetix stakers will keep staking for the sUSD rewards only. Another danger involves stakers keeping a 400% collateral proportion, with liquidation beneath 150%. Also, there’s a danger of a worldwide shared debt pool with an outside death spiral chance.
Indeed, Synthetix’s proposal gained strength recently, with founder Kain Warwick at the center of the activity. Such recommendations will likely see some response from the crypto community. Users have been vocal about the recent SIP-276 proposal on Twitter. Time will tell the winner among the voiced tweets.
Meanwhile, the crypto market endured downside tendencies during this publication. Bitcoin remained below $20K with slight price movements. Crypto buyers should trigger amplified volumes to support sustained upsides.
Editorial credit: Ira Lichi / shutterstock.com
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