Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • SUBMIT
Crypto Flexs
Home»EXCHANGE NEWS»SNX price rises 30% as Synthetix completely ends staking inflation.
EXCHANGE NEWS

SNX price rises 30% as Synthetix completely ends staking inflation.

By Crypto FlexsDecember 13, 20233 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
SNX price rises 30% as Synthetix completely ends staking inflation.
Share
Facebook Twitter LinkedIn Pinterest Email

As part of a watershed move toward more sustainable tokenomics, decentralized derivatives protocol Synthetix is ​​ending a nearly five-year program of inflationary SNX rewards for stakers.

The project community recently voted in favor of proposal SIP-2043, which would end weekly distribution of newly issued tokens to liquidity providers.


key point

  • Synthetix token holders voted to end SNX inflation rewards, making SNX deflationary.
  • SNX stakers are now only rewarded by transaction fees, not inflation.
  • Synthetix plans to introduce a SNX redemption and burn system using transaction fees.
  • Ending inflation rewards is part of the shift towards a more sustainable tokenomics.
  • SNX prices surged more than 30% on the news, hitting a 600-day high.

This decision closes the book on the inflation incentive experiments that helped drive Synthetix’s early growth and adoption. When first introduced in late 2018, SNX Inflation Compensation proved to be “incredibly effective” in increasing TVL and usage, according to the Synthetix team. Generous SNX rewards persuaded users to secure value in return for newly minted tokens.

But today, the effect of inflation compensation has disappeared. Staker action remained largely unchanged from week to week as SNX inflation fell into the low single digits on a yearly basis. The declining impact of inflationary rewards has prompted a rethinking of more impactful and sustainable incentive structures.

Chief among the new reward mechanisms is the SNX buyback and burn plan, which is scheduled to launch with Synthetix’s Andromeda protocol upgrade. Synthetix plans to use 50% of the proceeds to purchase SNX directly on the open market, using fees generated from trading activity. Purchased tokens are permanently destroyed, reducing the total supply.

Synthetix Network Price Chart (SNX)

Now that inflation rewards are ending, repeated buybacks and burns will quickly turn into SNX deflation. Trading volume on the Synthetix futures platform has already generated nearly $30 million in 2023 fees alone, indicating there is no shortage of fuel to burn.

Even under the new paradigm, stakers are not left behind. The remaining 50% of trading fees goes directly to liquidity providers as staking rewards. Stakers can also use their deposited tokens as collateral to access interest-free SNX loans, adding further incentive to participate.

SNX price reacted strongly to the planned changes. The token rose more than 30% in a week, surpassing $4.90 and hitting a two-year high as investors cheered a major change in token economics. With momentum still favorable, analysts have set an upside target of up to $10 over the coming months if the bullish momentum continues.

For Synthetix, this development marks a new chapter after five years of compensation due to supply inflation. Now that inflation rewards are suspended indefinitely, projects can focus their efforts on more specific value drivers such as trading activity and token burns for sustainable growth. This is part of a broader rethinking of DeFi design that values ​​long-term consistency over short-term gains.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Analysts expect a breakout of $135 as ETF approval buzz grows.

October 15, 2025

Cardano (ADA) Faces Selling Pressure – Is This the Start of a Trend?

October 12, 2025

Ethereum Price at Risk – Bears Lose Momentum Ahead of New Lows

October 9, 2025
Add A Comment

Comments are closed.

Recent Posts

MEXC Celebrates ZEROBASE (ZBT) Listing With Airdrop+ Event Featuring 55,000 USDT Prize Pool

October 16, 2025

How MasterQuant’s AI Trading Bot Is Becoming Every Investor’s Favorite Trade Machine

October 16, 2025

Seascape Launches First Tokenized BNB Treasury Strategy On Binance Smart Chain

October 16, 2025

ETH And BTC Holders Are Flocking To OAK Mining For Stable Profits Of $8,600 Daily

October 16, 2025

Will Solana price fall to $170 once it gets close to the important support level?

October 16, 2025

Crypto Market Rebound, L2 Surge and ZEC Shock: Daily Insights

October 16, 2025

ZBCN is tradable!

October 15, 2025

Analysts expect a breakout of $135 as ETF approval buzz grows.

October 15, 2025

Chinese woman pleads guilty ahead of trial in $7 billion British Bitcoin fraud case

October 15, 2025

XMoney Launches $XMN On Sui, Expands Listings Across Global Exchanges

October 15, 2025

ZNB) STRENGTHENS BALANCE SHEET WITH USD 231 MILLION BITCOIN-BACKED INVESTMENT AMID MARKET TURBULENCE

October 15, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

MEXC Celebrates ZEROBASE (ZBT) Listing With Airdrop+ Event Featuring 55,000 USDT Prize Pool

October 16, 2025

How MasterQuant’s AI Trading Bot Is Becoming Every Investor’s Favorite Trade Machine

October 16, 2025

Seascape Launches First Tokenized BNB Treasury Strategy On Binance Smart Chain

October 16, 2025
Most Popular

Bitcoin rebounds along with stocks as markets anticipate ECB interest rate cut this week.

June 3, 2024

BNB Chain Faces $80,000 Bitcoin Exploit White hackers or ongoing attacks?

May 28, 2024

Solana Price Crunch: $ 100 dangerous zone that causes more problems?

April 7, 2025
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.