TechFlow news — Synthetix founder Kain published an article today discussing an update plan for the SNX staking mechanism. He proposed implementing a new SNX staking module in Synthetix V3 to simplify the entire staking process. Under this model, users would only need to deposit SNX without facing market risks or having to manage hedging requirements. Initially, the treasury council will fund this staking pool, and in the future, a portion of Synthetix's protocol fees may be allocated to it. Kain emphasized that this simplified staking approach aims to attract more new users to the Synthetix V3 system.
Kain explained that the complexity of SNX staking has become a barrier for new users. For years, the Synthetix community has expressed concerns about the intricacies of SNX staking. Since SNX staking underpins all trading activities on Synthetix, the SNX collateralization ratio is crucial. While inflationary incentives were effective in boosting the SNX collateralization ratio in earlier years (2019), their impact diminished in 2021 and 2022. Therefore, introducing a simpler staking mechanism could help Synthetix attract more users and improve the SNX collateralization ratio.
