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

As a seasoned researcher with over two decades of experience in the financial markets, I have seen my fair share of projects that struggle to find their footing and thrive. The recent proposal by activist investor Benjamin Celermajer for Synthetix to overhaul its governance and operations caught my attention as a potential game-changer for this DeFi protocol.


The DeFi platform Synthetix is poised for significant improvement following an activist investor’s proposal to rejuvenate the system by modernizing its governance and operational structure. This SR-2 proposal was put forth by Benjamin Celermajer on September 25, outlining a comprehensive roadmap aimed at reviving the platform and preventing it from evolving into a “zombie” chain, characterized by inefficiencies and missed opportunities.

Based on the most recent tally, it appears that more than 99% of SNX token holders are backing the SR-2 proposition. Here’s a brief overview of the current status:

Synthetix Struggles Despite Market Resurgence

In simpler terms, the issue with Synthetix became apparent during a revival in the broader cryptocurrency market. Despite efforts, the protocol failed to gain traction and the question remains whether it can maintain user adoption.

As stated by Celermajer, these issues stem from suboptimal management and operational inefficiencies within Synthetix. Consequently, incidents such as late product rollouts, a deficit of long-term strategy, and an inability to seize market opportunities have become almost symbolic of this project.

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

Token Redesign, Expansion, and More Features

As a crypto investor, I’m eager about the SR-2 proposal that aims to tackle several issues hindering the performance of the Synthetix protocol. In their roadmap, Synthetix suggests a comprehensive overhaul of the SNX token and a more efficient restructuring of its governance system for smoother decision-making processes.

According to the proposed plan, one initial strategy for Synthetix involves overhauling the SNX token with the aim of enhancing its efficiency in decision-making (governance), generating income, and rewarding token owners.

In addition, Synthetix intends to broaden its business scope to include operations on the Solana network. This move is designed to leverage Solana’s thriving user base and capitalize on its rapidly advancing blockchain technology.

Moreover, the renovation will encompass Synthetix’s recently debuted Layer-2 platform, Snaxchain. The intention is to enhance the capabilities of its SNAX token within this L2 and transfer SNX tokens onto the L2 network for better functionality. Additionally, they plan to introduce a native stablecoin in the near future. If these plans materialize, they could significantly increase liquidity and usage on the platform.

Governance Issues

A fresh approach to revitalize the project could involve refining its management structure. At present, this structure consists of three distinct committees: the Spartan Committee, the Grants Committee, and the Treasury Committee.

According to Celermajer’s viewpoint, this structure is excessively broken down, which increases the difficulty of making decisions unnecessarily, resulting in inefficiencies.

Given the present circumstances, SR-2 is considering consolidating all governing power into a unified Spartan Council, consisting of seven members who each hold an equal vote.

An advocate for change in corporate structure thinks that by having one vote per decision, responsibility and transparency in decision-making processes would increase significantly. Not only would this expedite the rollout of fresh products, but it could also resurrect Synthetix’s prominence within the Decentralized Finance (DeFi) industry.

With 99.4% of the votes in favor of the plan, there’s no question that the revamp will proceed. Now, we’ll just have to watch how these adjustments rejuvenate Synthetix protocol and help it regain its status as a significant player within the DeFi landscape.

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2024-10-01 13:34