Crypto project founder Synthetix proposes capping SNX cryptocurrency supply
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Answer Crypto project founder Synthetix proposes capping SNX cryptocurrency supply
The Synthetix Improvement Proposal (SIP) will end the SNX swell and limit it to 300 million digital tokens within ten weeks.
According to the Synthetix founder, inflation was designed to smooth the network, and it did the job because the network now gets fees from atomic swaps.
Therefore, it must be turned off now.
SIP 276’s proposal to “turn off the money printer” will limit the supply of digital tokens and any decisions made about the provision of “Meta-Governance” tokens.
Which means that future changes to SNX’s offering will require a unanimous decision.
At present, SNX’s bid is around 293 million.
So there will still be ten additional fee periods where SNX will be minted and distributed until the bid reaches 300 million.
In recent months, Synthetix’s revenue has increased significantly, due to protocols such as Curve and 1 inch being used for atomic exchanges.
In June, Synthetix generated over $1 million in daily fees.
While the daily fee has now decreased, it is still over $150,000 on average, and this month’s trading volume on the network is currently over $1.2 billion.
While Warwick, the project’s founder, believes the proposal has a chance to pass, some believe the proposal’s success may affect Synthetix.
Crypto analytics firm Delphi Digital said the protocol may struggle to maintain its user base and attract new users with organic revenue, especially when competitors offer higher returns.
Read:Find out the latest updates on the Cryptopia hacking process.
SNX is trading at $3 after rising 10% in the past 24 hours
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