After the latest announcement, Synthetix appears ready to surge in popularity. To commemorate its launch, the network has proposed capping SNX token supply at an impressive 300 million. Surprisingly, that comes after two previous attempts to increase the SNX staked amount both of which ultimately failed (Messari reports).
The plans have increased the inflationary rewards for SNX, which is a positive development given the recent decline in the value of the asset. With the release of Synthetix V3, new staking benefits will become available. That will accomplish what Synthetix founder Kain Warwick set out to do, which was to build a platform that can sustainably generate money and distribute that revenue to token holders.
Attractive Talk, Attractive Reward
Following the recent integrations with Atomic Swap, Kwenta, and 1inch, the volume on the Synthetix platform saw a massive uptick. According to recent numbers, trading fees each day amounted to almost $362K. SNX investors were rewarded in sUSD for their bets.
Synthetix has experienced a rise in latency assaults despite the ‘unusual’ increase in trade volume. Despite being negative, the attacks have led to a rise in sUSD staker rewards. This may encourage market participants to maintain staking even after inflation rewards have been dispersed.
Synthetix should work with Chainlink to make a secure chain, as suggested by nullpackets, an anonymous Twitter user and crypto enthusiast. A steady stream of sUSD rewards, in his opinion, would help Synthetix mature into a platform capable of generating consistent income.
Signs That Should Raise Concern
Even while the network is making efforts to adjust its reward structure, there are still concerns that prevent it from expanding sustainably. Some have questioned whether or not Synthetix stakers will continue doing so solely for the sUSD incentives. Staking with less than 150% collateral proportion poses an additional risk. Also, a global debt pool might potentially lead to an infinite downward spiral.
Indeed, Synthetix’s plan has been gaining traction as of late, spearheaded by the company’s founder Kain Warwick. If these suggestions are made, the crypto community will probably react in some way. The recent SIP-276 proposal has sparked a lively discussion amongst Twitter users. Whether or not voiced tweets ultimately triumph remains to be seen.
The cryptocurrency market, however, has been experiencing downward trends during the time period covered by this article. Bitcoin remained below $20K with slight price movements. To maintain the market’s upward momentum, crypto should see more volumes from buyers.