After the latest announcement, it would appear that Synthetix is getting ready for a breakthrough. A suggestion is made by the network to limit the total number of SNX tokens that can ever be created to an impressive 300 million. Surprisingly, this comes after two unsuccessful attempts to increase the total amount pledged in SNX (Messari reports).
The suggestions have resulted in an increase in SNX’s inflationary rewards, which is a desirable development since it has led to downward pressure on the price of the asset. During the introduction of Synthetix V3, new staking incentives will become available. This will allow Synthetix founder Kain Warwick to achieve his aim of developing a platform that can consistently generate revenue and distribute a portion of that earnings to token holders.
Talk that’s attractive, get rewards that are attractive
Following the most recent integrations between Atomic Swap, Kwenta, and 1inch, the Synthetix platform has seen an enormous increase in the volume of transactions taking place on it. According to the most recent available data, the daily trading costs amounted to more than 362,000 dollars. SNX speculators were awarded some of the funds in the form of sUSD prizes.
In spite of the “unusual” increase in trade volume, Synthetix has observed an uptick in the number of latency assaults. The attacks have resulted in an increase in the amount of sUSD staker rewards, despite the fact that they are negative. This could encourage market participants to continue betting even after the inflation incentives have been distributed.
A crypto enthusiast who uses the handle nullpackets on Twitter and remains anonymous made the suggestion that Synthetix should work together with Chainlink to develop a secure chain. He believes that such a step would strengthen Synthetix to the point where it may establish a reliable revenue-creating platform through the continuing distribution of sUSD rewards.
Significant Warning Signs
Even while the network is making efforts to change the way it approaches rewards, there are still inherent concerns that prevent sustainable growth. There are still unanswered questions regarding whether or not Synthetix stakers will continue to stake just for the sUSD payouts. An additional risk is posed by speculators who maintain a 400% collateral proportion while only liquidating at a level of 150%. Additionally, there is a risk of a global shared debt pool, which presents the possibility of an external death spiral.
Indeed, in recent times, Synthetix’s idea has been gaining support, with company founder Kain Warwick serving as the driving force behind the action. The cryptocurrency community will almost certainly provide feedback in response to such ideas. Twitter users have been loud about their opinions over the recent SIP-276 proposal. The passage of time will reveal the victor among the tweets with voices.
During the course of this publication, the cryptocurrency market continued to show bearish tendencies. Bitcoin’s price stayed below $20,000 despite some minor fluctuations. In order to maintain persistent upsides, buyers of cryptocurrencies need spark magnified volumes.