What is SNX coin? What does SNX mean?

Synthetix (SNX) is a blockchain-based decentralized platform for issuing and trading synthetic assets that track the prices of real-world assets, backed by collateralized SNX tokens and governed by SNX holders.

Oct 01, 2024 at 11:06 am

1. What is SNX Coin?

Synthetix Network Token (SNX) is a native cryptocurrency and governance token for the Synthetix platform, a decentralized synthetic asset issuance protocol.

2. What does SNX Mean?

SNX stands for "Synthetix". The coin derives its name from the platform's ability to create "synthetic assets", which track the price of real-world assets such as fiat currencies, commodities, and stocks.

3. What is the Purpose of SNX?

SNX serves several purposes within the Synthetix ecosystem:

• Collateralization: SNX tokens are staked as collateral to issue and maintain synthetic assets.
• Governance: SNX holders have voting rights on platform decisions and proposals.
• Transaction fees: SNX is used to pay network transaction fees.
• Incentivization: SNX holders are rewarded with inflation rewards for staking their tokens.

4. How does SNX Work?

The Synthetix platform uses a two-token system:

• SNX Token: The collateral token used to maintain synthetic assets.
• Synth Tokens: Synthetic assets that track the price of real-world assets.

Users can stake SNX tokens to mint Synth tokens, provided they meet the required collateralization ratio. This process allows users to access and trade synthetic assets without holding the underlying asset directly.

5. Key Features of SNX:

• Decentralized synthetic asset protocol
• Collateralized by SNX tokens
• Governance system driven by SNX holders
• Utility for transaction fees and incentivization
• Enables seamless trading of synthetic assets