TechFlow reports that Synthetix founder Kain Warwick has submitted a draft proposal, SIP-2043, to the governance body Spartan Council, aiming to end SNX inflation. The plan proposes reducing weekly SNX inflation rates to zero on Ethereum mainnet, Optimism, and Base. Warwick noted that this change would require only updating a single parameter and could therefore be implemented relatively quickly.
Kain Warwick believes the effectiveness of SNX inflation incentives has significantly declined, and continuing inflation would now be counterproductive. Given that inflation is already at a low single-digit level, it no longer meaningfully impacts staker behavior.
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