Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • 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

Cardano (ADA) Signal Recovery -Is there a strong rise?

September 15, 2025

The price of Etherrium surges beyond $ 4,500. -Main level for monitoring more profits

September 12, 2025

Bitcoin Price Struggle $ 113K -Will Bulls take a break?

September 9, 2025
Add A Comment

Comments are closed.

Recent Posts

Cardano (ADA) Signal Recovery -Is there a strong rise?

September 15, 2025

BitMine Immersion (BMNR) Announces Crypto And Cash Holdings Of $10.8 Billion, ETH Holdings Exceeding 2.151 Million

September 15, 2025

How SWLMiner Could Help You Get The IPhone 17 Air

September 15, 2025

Metabuses are increasing again -Records in August +13k NFT users

September 15, 2025

Rabby Wallet integrates XRPL EVM chain with peersyst

September 15, 2025

Stop Dreaming About The Lottery. Join H Mining And Start Earning!

September 14, 2025

Web3 EXEC warns that the US dollar Stablecoin end game is not priced.

September 14, 2025

Binance’s new Defi Initiative sparked Rollish Momentum, and BNB hit a new ATH of more than $ 900.

September 13, 2025

Top 5 Crypto PR Agencies to Scale Your Blockchain Project in Europe

September 13, 2025

The price of Etherrium surges beyond $ 4,500. -Main level for monitoring more profits

September 12, 2025

BNBCapital Emerges As Top Immutable DeFi Protocol With 239% Returns And Zero Admin Functions

September 12, 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

Cardano (ADA) Signal Recovery -Is there a strong rise?

September 15, 2025

BitMine Immersion (BMNR) Announces Crypto And Cash Holdings Of $10.8 Billion, ETH Holdings Exceeding 2.151 Million

September 15, 2025

How SWLMiner Could Help You Get The IPhone 17 Air

September 15, 2025
Most Popular

US bids to seize Bankman-Fried cryptocurrency allegedly used in Chinese bribery

November 13, 2024

Analysts say MicroStrategy’s bold $42 billion capital plan is ‘a win for everyone’

October 31, 2024

Toncoin Price Soars: Fighting Bearish Sentiment in the Cryptocurrency Market

November 29, 2023
  • 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.