What is SNX coin? Introduction to the issue price, total amount and white paper of SNX coins

SNX, the native token of the Synthetix protocol, serves as collateral for synthetic assets, Synths, that track the value of real-world assets like stocks, commodities, and cryptocurrencies.

Oct 09, 2024 at 08:18 am

What is SNX Coin?

SNX is the native token of Synthetix, a decentralized synthetic asset issuance protocol. Synthetix enables the creation of synthetic assets, known as Synths, that track the value of real-world assets such as stocks, commodities, and cryptocurrencies. SNX serves as the collateral that backs the Synths, ensuring their stability.

Issue Price and Total Amount of SNX Coins

• Issue Price: $0.10
• Total Supply: 212,424,133 SNX

White Paper

The Synthetix white paper provides a comprehensive overview of the project, including its goals, technical details, and economic model. It was published on March 6, 2018.

Steps to Understand SNX Coin:

1. Purpose of SNX Coin:
SNX ensures the stability and liquidity of Synths, which are synthetic assets that track the value of various real-world assets.

2. Collateralization of Synths:
Synths are collateralized with SNX tokens. Users must lock up SNX as collateral in order to mint Synths.

3. Stability Mechanism:
If the value of a Synth's underlying asset decreases, SNX collateral is used to purchase more of that asset and stabilize the Synth's peg.

4. Staking and Rewards:
SNX token holders can stake their coins to earn staking rewards. Staked SNX is used to secure the Synthetix network and ensure the stability of Synths.

5. Governance:
SNX token holders have governance rights over the Synthetix protocol. They can propose and vote on changes to the protocol's parameters and features.

6. Deflationary Supply Model:
Synthetix periodically burns a portion of SNX tokens used to pay transaction fees, creating a deflationary supply model.

Conclusion:

SNX coin is an essential component of the Synthetix ecosystem. It plays a crucial role in ensuring the stability and liquidity of synthetic assets, providing users with a new avenue for accessing various asset classes. The white paper provides a comprehensive guide to understanding the technical and economic aspects of Synthetix and SNX coins.