What is SNX coin? Learn what SNX coin is in one minute

SNX holders contribute to the Synthetix ecosystem by staking their tokens to mint synthetic assets, providing network security rewards, and governing the protocol through a DAO.

Oct 06, 2024 at 07:17 pm

What is SNX Coin?

1. Definition
SNX coin is the native token of the Synthetix protocol, a decentralized finance (DeFi) platform that allows users to create synthetic assets representing real-world assets, such as stocks, commodities, and fiat currencies.

2. Purpose
SNX holders play a crucial role in the Synthetix ecosystem:

• Users stake SNX to mint new synthetic assets (Synths).
• Staked SNX secures the Synthetix network and earns rewards.
• SNX holders govern the protocol through a decentralized autonomous organization (DAO).

3. Tokenomics

• Total supply: 210,951,241 SNX
• Circulating supply: 101,732,962 SNX
• Usage: Staking, governance
• Launched: February 2019

4. How Does SNX Work?

• Users stake SNX to create Synths, which track the value of real-world assets.
• Each Synth is backed by a pool of ETH or SNX held in a smart contract.
• Stakers earn rewards for providing liquidity to the network.

5. Benefits of SNX

• Enables access to a wide range of synthetic assets without the need for traditional intermediaries.
• Provides a way to speculate on the value of real-world assets without owning them directly.
• Rewards users for providing liquidity and securing the network.

6. Conclusion
SNX coin is a cornerstone of the Synthetix platform, empowering users to create, trade, and leverage synthetic assets in a decentralized and efficient manner.