Kane Warwick, founder of DeFi platform Synthetix, has proposed to the community to set a fixed emission cap of 300 million tokens for the SNX governance token.

https://t.co/CkEPtzNYvj

— kain.eth (✨🔴_🔴✨) (@kaiynne) August 25, 2022

According to Warwick, the inflationary model worked effectively during the protocol’s launch.

“Now that the project is generating substantial and increased wage income from atomic swaps and perpetual derivatives, it’s time to undo inflation,” he said.

Warwick reminded that the decision to stop issuing tokens was made after four years in 2019. Adjusting for inflation at 2%, the total issuance would be 250 million SNX.

However, subsequent management decisions have changed these parameters and the protocol will approach a total supply of 300 million SNX in a few weeks.

“On the one hand, inflation redistributes ownership of the network among those involved in staking, but it also reduces the yield of fees expressed in dollars over time. The problem is that this puts constant downward pressure on the SNX price,” Warwick explained.

He added that by locking in the 300 million token supply, the platform guarantees a dollar-denominated increase in commission returns.

“Besides, 300 memes are too good to give up,” he finished.

The total supply of SNX is 293.25 million tokens. According to Warwick’s initiative, the issuance of the asset will continue for ten more cycles with 674,873 SNX issuances per week until the limit is reached.

In the background at the beginning of the discussion, he was optimistic about the chances of his idea being accepted. The protocol’s founder plans to submit a formal proposal next week to develop Synthetix (SIP).

According to DeFi Llama, TVL platform $522 million. The protocol ranks 25th in the ranking for this indicator.

At the time of writing, the SNX is trading around $3.3. In the last 24 hours, the price of the token has increased by almost 9% (CoinGecko). The coin rate peaked at $28.53 in February 2021.

Recall that ForkLog found out what management tokens are on training cards, how to get them, and what they are used for.

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