The Synthetix community has given the green light to a governance proposal called SIP-2043, paving the way for stopping token inflation in the Synthetix (SNX) ecosystem.
Synthetix Announces End to Token Inflation, Focuses on Buybacks and Burns
This decision was made as part of a comprehensive strategy to move towards alternative mechanisms, including token buybacks and burns, marking a new phase for the decentralized derivatives protocol.
Synthetix community members voted in favor of SIP-2043, indicating that they agreed to end token inflation within the Synthetix protocol. This decision reflects the maturation of the project and a shift towards more sustainable growth strategies.
With the end of token inflation, Synthetix will begin a new era focusing on alternative strategies. The upcoming Andromeda software release will introduce mechanisms such as token buybacks and burns.
Synthetix stakers will no longer need to claim weekly inflationary token rewards as part of this transition. The decision to move away from weekly demand appears to be in line with the evolving needs of the project and its community.
Following the announcement, Synthetix token (SNX) spiked and reached a yearly high of $4.95. At the time of writing this article, it was traded at $ 4.67.
*This is not investment advice.