What is the issuance and circulation of SNX coins?

Synthetix Network utilizes SNX coins for staking, synthetic asset issuance, and incentivizing network participation through inflationary rewards.

Oct 02, 2024 at 11:18 am

SNX Coin Issuance and Circulation

1. Initial Distribution

SNX coins were initially distributed through a token sale in 2018. A total of 100 million SNX coins were created, with 60% sold during the token sale, raising approximately $30 million.

2. Genesis Block

The genesis block of the Synthetix Network was mined on January 15, 2019, with an initial distribution of 300 million minted SNX coins. These minted tokens represented the network's inflation rewards and were distributed over a period of 2 years.

3. Staking and Synthetic Asset Issuance

SNX coins can be staked on the Synthetix Network to earn a portion of the network's transaction fees and issuance rewards. Staking also enables users to mint synthetic assets that track the value of real-world assets.

4. Inflation Rewards

The Synthetix Network uses an inflationary model to incentivize staking and growth. The network mints new SNX coins at a rate of 2% per year, with these coins distributed to stakers as rewards.

5. Circulation and Market Cap

As of February 2023, there are approximately 390 million SNX coins in circulation. The current circulating supply represents around 65% of the total supply of SNX coins. The market capitalization of SNX is determined by multiplying the circulating supply by the current market price.

6. Role of SNX in the Synthetix Network

SNX coins play a crucial role in the operation of the Synthetix Network:

• Security: Staked SNX coins contribute to the security of the network by backing the issuance of synthetic assets.
• Incentivization: Inflation rewards and transaction fees incentivize users to stake their SNX coins and contribute to the growth of the network.
• Governance: SNX coin holders have the ability to participate in governance and vote on key decisions that affect the future of the Synthetix Network.