Synthetix founder Kain Warwick has proposed a 3:1 split of SNX tokens, followed by a buyback and burn using the Treasury’s fee yield.
The proposal, which is one of 12 governance proposals outlined in Warwick’s “State of Synthetix” post, aims to increase the value of SNX tokens and stimulate increased participation from the Synthetix community.
“Should we proceed with a 3:1 split, we would have approximately 90 million additional tokens for buyback and burn, with a market price of $60 million,” Warwick explained.
The founder further clarified that the funds required to burn these tokens would be sourced from the treasury fee yield.
The proposal has been met with mixed reactions from the Synthetix community. Some community members have expressed support for the proposal, arguing that it would increase the value of SNX tokens and boost the protocol’s adoption.
Others have expressed concerns about the proposal, arguing that it would dilute the value of SNX tokens and could lead to a decrease in liquidity.
The proposal will be put to a vote by the Treasury Council (TC), Synthetix’s four-member governance body, which is responsible for resource allocation for the protocol’s expansion and growth.
The TC is expected to vote on the proposal in the coming weeks.