The community members at derivatives protocol Synthetix have approved a governance proposal SIP-2043 to terminate SNX token inflation.
With the next Andromeda software upgrade, new tactics like burns and buybacks of tokens are made possible by this most recent modification. Staker on Synthetix will no longer have to claim their weekly inflationary token incentives when inflation ends.
The protocol will use trading fees in the future to enable token burns and buybacks. By utilizing the fees produced by the system to buy and burn SNX tokens, this tactic seeks to reduce the total amount of tokens in circulation.
In response to this event, the Synthetix token has seen a rise in value, hitting an annual high of $4.91, according to CoinMarketCap data.
Additionally, the token has increased by 65% in the last month and by 150% in the last year. The token’s value has increased, however it is still 82% behind its peak from February 2021.
With almost 300 million Synthetix tokens in circulation right now, its fully diluted market capitalization is $1.53 billion. The platform makes Decentralized derivatives trading possible; its liquidity pools, which span the Ethereum and Optimism Layer 2 networks, have a combined worth of over $890 million.
