The activist investor’s plan to completely “reboot” decentralized finance protocol Synthetix and prevent it from becoming a “zombie” chain has now received more than 99% approval from voters.
In his September 25 SR-2 proposal, Benjamin Celermajer outlined plans to “completely overhaul” and improve Synthetix’s governance and day-to-day operations.
Despite the recent resurgence of the broader cryptocurrency market, Synthetix has not been able to build momentum or witness sustained adoption due to major flaws in its governance and day-to-day operations, Celermajer says.
This caused the Synthetix protocol to miss several key opportunities, he said, adding that development was marred by product launch delays and a “lack of vision.”
At the time of publishing, the proposal received near-unanimous support from SNX holders, with 99.4% of 200 holder votes (18 million SNX tokens) voting in favor of the overhaul.
The SR-2 offering received 99.4% approval from 200 SNX holders. Source: Synthetix.io
Celermajer told Cointelegraph that the SR-2 proposal “outlines a path to reinvigorate the project and inject new, high-growth ideas.”
“This includes redesigning tokens, new ways for the protocol to earn additional revenue, and deploying new contracts to additional chains such as the Ethereum mainnet and Solana,” he added.
“The ultimate goal is to return our internal operations to a culture of innovation, rapid iteration, and fast delivery and re-establish industry trust that Synthetix is a DeFi leader.”
Major changes in overhaul
This overhaul includes several important changes that will help Celermajer get its protocol back on track for long-term success.
The first is to completely redesign the protocol’s native SNX token and enhance the capabilities of Synethix’s recently launched Layer-2 network Snaxchain.
“Synthetix needs to make SNX token holders first-class citizens again and reimagine how the tokens can be governed, monetized, and benefited from projects,” Celermajer wrote in a September 25 post.
The overhaul will also add additional features to the native SNAX token on L2, migrate SNX to L2, and launch a native stablecoin on the network.
The SR-2 proposal also includes deploying the Synthetix protocol on Solana to take advantage of its growing usage and the “strong community” built on the network.
Celermajer believes that “more and more DeFi protocols will head to Solana” to serve the strong community that has persisted on the network for years despite several issues such as connectivity to FTX assets and frequent outages. quantum.
Governance takes center stage
Another key issue that SR-2 seeks to address is that of governance. Synethix is currently governed by three separate councils: the Spartan Council, the Grants Council, and the Treasury Council.
Celermajer says current models are “too fragmented” and often lead to “incomplete decision-making and inefficiencies.”
If approved, SR-2 would consolidate all governance powers into a single Spartan Council of seven seats with equal voting rights.
“By unifying the councils, ultimate responsibility for all decisions rests with one body, which must ensure that all strategic, commercial and operational considerations are deliberated before decisions are made,” Celermajer said.
Celermajer believes that these governance changes can help the protocol deliver new products faster and strongly regain relevance in the DeFi sector.
Synthetix’s TVL is down 90% from its 2021 all-time high. Source: DeFiLlama
According to data from DeFiLlama, Syntehtix’s total value locked (TVL) is currently at $262 million, down 89% from its all-time high of $2.9 billion hit on February 12, 2021.
magazine: The proposed changes could save Ethereum from the L2 ‘roadmap to hell’.