Synthetix Crypto Developer (SNX) Will Burn Token

Token SNX. (Photo; Doc. Binance US)

JAKARTA The Synthetix (SNX) developer is rumored to be reducing the supply of SNX tokens circulating using a burning or burning mechanism. This mechanism will eliminate a number of token supplies from circulation. This method usually has the potential to increase the value of the token itself.

Synthetix is a decentralized financial protocol or DeFi. The SNX token is trading at Rp34,158 at 16:28 WIB today. The burning plan was proposed by the founder of Synthetix, Kain▁Timursin via blog post.

He conveyed 12 different suggestions for the future of the Synthetix project. One of them is the distribution of SNX 3:1 and buyback as well as burn tokens. Comedy argues that although inflation is still needed as incentive and liquidity, the buyback and burn mechanism can still be useful.

Even so, this suggestion is still conceptual and confirmation is needed from the company's Financial Council through a voting mechanism. Quoting DailyHodl,▁mahalsia conveyed the potential advantage of the strategy. If a distribution of 3:1 is made, around 90 million additional SNX tokens can be repurchased and burned with a market value of around 60 million US dollars (or equivalent to Rp896 billion).

The source of funds for this arson is expected to come from the proceeds of treasury costs, which currently generate around US$5 million (Rp74.7 billion) per year. If trading volume increases in the future, the time required to complete this burn could be significantly reduced.

For information, Synthetix is a protocol that allows synthetic assets to be published and traded on Ethereum (ETH). One of the top platforms supported by Synthetix is Kwenta.io, which offers trading of cryptocurrencies, fiat currencies, and other assets with decentralized leverage.

Recently, Synthetix also launched support for several tokens such as Pepe Coin (PEPE), Sui Network (SUI), Blur, XRP, Polkadot (DOT), Floki Inu (FLOKI), and the Eternal Contract Injective Protocol (INJ). With more than 40 available trading pairs, Synthetix continues to expand its reach in the crypto market.