Anti-inflation shield 2.0
One of the key points of blockchain interactions and one of the main selling points of blockchain technology is the inherent transparency granted by how on chain transactions works.
Unlike traditional markets, analysis of transactions in blockchain allows much more conclusions to be drawn, as the behavior of each investor can be examined in this way and appropriate measures can be taken.
We performed an on-chain analysis to verify why the price of the $SNP token has been falling over the past month, and we have drawn some conclusions that confirmed our initial assumptions.
The key reason behind this fall is the too high inflation, which is due to a much too high APR. Despite the fact that the number of tokens locked in the staking pools is constantly growing, most of the tokens obtained from staking rewards are being dumped back onto the market.
Therefore we have taken a number of actions to better safeguard the interest of our investors:
- We made the decision to reduce the APR by 50%. (SNP staking will have 15% APR, SNP LP staking will have 50% APR)
- We plan to reward those that choose to stake for longer periods of time with a higher APR (for each month of staking the APR will increase — the condition will be to not sell the rewards received from staking). We think that a person has the right to be called diamond hands if he/she does not drop tokens from the staking rewards directly on the market.
- We plan to allow users to declare longer stake periods, which will increase your APR and additionally increase your personal project allocation. For example, locking tokens for 1 month will give users a bonus of 10% of allocation points while instead locking tokens for 3 months will give a bonus of 30% of allocation. The percentage of bonus is just an example — the appropriate numbers will be announced in one of the updates coming in the following weeks.
The change to the reduced APR will come into effect on 19.01.2022. The other changes are already being implemented and will also be published in one of the updates coming in the following weeks.
We have taken this decision mainly to ensure long term stability to our holders, and to incentivize the new wave of people coming to the network to take a more firm presence in our community by letting them be more involved in the tokenomics of the SNP.
We are already very positive about the upcoming new changes, and we can’t wait for further development of the Network, but we want to strive for the best Synapse possible, and to do so, some changes need to be made early on, to ensure the right amount of analysis goes into each move and to ensure that we are able to answer properly to possible actual downtrend in the market that are sure to come in the years to come.
About Synapse Network
Synapse Network is developing a cross-chain investment and start-up acceleration ecosystem based on blockchain technology to give everybody an equal chance to contribute to great upcoming projects and to do so early on. We are bridging the gap between the traditional & crypto market. The idea of the Synapse Network technology goes beyond the standard offer of launchpads available on the market, becoming a true technological brand providing tech solutions.