Synthetix Set for Major Revamp as Overhaul Receives 99% Backing from SNX Holders

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Synthetix Set for Major Revamp as Overhaul Receives 99% Backing from SNX Holders

Decentralized finance (DeFi) protocol Synthetix is set for a major boost after an activist investor’s proposal to bring life back to the chain by overhauling its governance and operations. The SR-2 proposal was introduced by Benjamin Celermajer on September 25. It detailed the step-by-step plans on how to revive the platform and save it from becoming a “zombie” chain, where inefficiencies and missed opportunities will be the order of the day.

According to the latest vote count, over 99% of SNX token SNX $1.60 24h volatility: -1.7% Market cap: $526.72 M Vol. 24h: $29.69 M holders are now in support of the SR-2 proposal.

Synthetix Struggles Despite Market Resurgence

Synthetix’s predicament recently came to light when there was some sort of rejuvenation in the wider crypto market. The protocol struggled to build any momentum, and could it sustain adoption.

According to Celermajer, these issues are a result of poor governance and inefficiencies in the day-to-day operations of Synthetix. Such experiences like delayed product launches, a lack of strategic vision, and an overall failure to capitalize on market opportunities are now almost synonymous with the project.

This realization was what became the driving force behind the proposal led by Celermajer.

Token Redesign, Expansion, and More Features

The SR-2 proposal wants to address many of the concerns currently dragging down the Synthetix protocol. Outlined in Synthetix’s plans is the complete redesigning of its native SNX token and the streamlining of its governance structure.

The first growth idea for Synthetix, per the proposal, is to carry out a complete redesign of the SNX token. This is to make it more effective in governance, revenue generation, and benefiting token holders.

Furthermore, there is a plan to expand Synthetix’s operations beyond Ethereum ETH $2 628 24h volatility: -0.1% Market cap: $316.99 B Vol. 24h: $16.30 B to Solana SOL $156.2 24h volatility: 0.1% Market cap: $73.18 B Vol. 24h: $2.55 B . This expansion aims to tap into Solana’s growing community and build on its high-flying blockchain.

Also, the overhaul will extend to Synthetix’s recently launched Layer-2 network Snaxchain. It will seek to develop the L2 by improving the functionality of its SNAX token and migrating SNX to the L2 network. This is not to mention the fact that there are also plans to launch a native stablecoin soon. The move, if successful, is expected to boost liquidity and usage on the platform.

Governance Issues

Another way to re-energize the project is through its governance. The platform is currently being governed by three separate councils. They are the Spartan Council, the Grants Council, and the Treasury Council.

As Celermajer argues, this model is too fragmented, thus making decision-making more complex than it should be, ultimately leading to inefficiencies.

In view of the current situation, SR-2 is looking at compressing all governance power into a single Spartan Council, which will have seven members with equal voting authority.

The activist investor believes that, with a single unit of governance, there will be more accountability in the area of decision-making. This will not only help the protocol deliver new products faster but also boost Synthetix’s return to relevance within the DeFi sector.

With 99.4% of the vote cast in support of the proposal, there is no doubt that the overhaul will move forward. So, it only remains to be seen how these changes will breathe life back into Synthetix protocol and bring it back to prominence in the DeFi ecosystem.next

Synthetix Set for Major Revamp as Overhaul Receives 99% Backing from SNX Holders