Synthetics activist investor ‘Renewal’ garners 99% approval from SNX holders
An activist investor's plan for a decentralized financial protocol to completely “reboot” synthetics and save it from becoming a “zombie” chain has now received approval from more than 99% of voters.
On September 25 SR-2 proposal, Benjamin Selermajer announced a plan to “completely redo” and improve the management of synthetics and daily operations.
Despite its recent resurgence in the broader crypto market, Syntex has failed to build momentum or witness any sustained adoption due to major flaws in its management and day-to-day operations, Celermajer says.
This caused Syntex to miss out on several key opportunities and saw its growth hampered by delayed product launches and a “lack of vision”, he added.
Since its publication, the proposal has received close support from SNX holders with 99.4% of votes from 200 holders – 18 million SNX tokens.
The SR-2 proposal was accepted by 99.4% of the 200 SNX holders. Source: Synthetix.io
Speaking to Cointelegraph, Selermajer said the SR-2 proposal “outlines the way forward to reinvigorate the project and introduce some new, high-growth ideas.”
“These include token upgrade design, new methods for the protocol to capture additional revenue, and new contracts on additional chains – such as Ethereum Mainnet and Solana.”
“The ultimate goal is to return internal operations to a culture of innovation, rapid iteration, rapid delivery and increase industry confidence that Synthetix is a DeFi leader.”
The key changes again
The overhaul features several key changes that Celermajer believes will help the protocol return to success in the long run.
The first is to completely revamp the protocol's native SNX token and upgrade Snaxchain's recently launched Synethix functionality.
“Synthetix needs to make SNX token holders first-class citizens again and think about how the token can be managed, monetized and benefited from the project,” Seilermajer wrote in a September 25 post.
Additionally, the update adds additional functionality to the L2 native SNAX token, migrates SNX to L2 and launches a native stablecoin on the network.
The SR-2 proposal involves deploying the Synthetix protocol on Solana in order to take advantage of the growing usage and “strong community” built on the network.
Selermajer believes that “an increasing set of Diffie protocols will find their way to Solana” to serve the strong community that has remained on the network for many years – for example, the connection to the FTX property and frequent outages – can reduce adoption.
Administrative work takes the main stage
Another core issue SR-2 aims to address is the management problem. Synethix is currently governed by three different councils: the Spartan Council, the Gifts Council, and the Treasury Council.
Selermajer says this current model is “too fragmented” and often leads to a lot of “incomplete decision-making and inefficiency.”
If passed, SR-2 would merge all jurisdictions into a single Spartan Council composed of seven seats with equal voting power.
“By combining councils, there is final accountability for decisions made in one entity, and this entity must ensure that all strategic, business and operational issues are discussed before a decision is made,” Selermajer said.
Celermajer believes that this management change will help the protocol deliver new products faster and regain relevance in the DeFi sector.
TVL on Synthetix is down 90% from its 2021 all-time high. Source: DeFillama
The total locked-in value (TVL) on Syntehtix stood at $262 million, down 89% from an all-time high of more than $2.9 billion, according to data from DiFillama on February 12, 2021.
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