THE DAO: Stopping Token Supply Growth and Simplifying Staking
We’re thrilled to announce the beginning of our DAO voting phase. Your participation is instrumental in shaping the future of the Synapse Network. Before you cast your vote, let’s dive into the details of the second question posed to all of our community members.
The premise
The exponential growth in our token supply has not been without its ramifications. This burgeoning supply catalyses erratic market dumps, while the inflationary staking mechanism has been falling short of the community’s expectations for price solidity and appreciation.
We recognise the role of broader market dynamics at play, dynamics that have been affecting the mainstream market as much as the digital one.
However, with the prospective $SNP token network migration, we are geared to recalibrate the token’s economic structure, and we believe that by strengthening our position we can resist those market conditions and actually grow in this period of great turmoil.
Our current aim is to curtail any further supply proliferation, ensuring that we’re strategically positioned for any possible upcoming bullish market phases.
By doing so, we seek to protect our investors’ interests and resonate with contemporary market practices while maintaining clarity and simplicity for prospective investors.
The question
Are you in favor of stopping the growing supply of $SNP tokens by changing the current staking model and simplifying the entire staking path?
For a while now, we’ve been observing the issue of our token’s increasing supply and the resulting inconveniences.
The growing number of tokens in the market leads to uncontrolled dumps, and the inflationary staking model doesn’t favor the community’s desire for stability and price growth.
While we acknowledge that market conditions are playing a significant role here, with the migration of the $SNP token to a different network, we aim to introduce structural changes to the token’s economy itself.
The action we’re proposing involves simplifying the current staking model and introducing a new structure based solely on the allocations with lowered APR (somewhat akin to the current “Epic Allocations” with minor adjustments) while retaining the SNP Token Power model.
This staking would be available in five different time frames:
- 3 months
- 6 months
- 12 months
- 24 months
- 36 months
We believe that this solution will also prove appealing to new members of our community, as it provides them with an opportunity to explore our platform, our integrations and our services in an approachable and straightforward way, without having to dive into the many details of our current staking model, which is for sure very customizable and can be tailored to each individual need, but is also needlessly complex for people first approaching our ecosystem.
Why are we proposing this change?
While analyzing our token’s price, it’s evident that the increasing supply is impacting its value negatively. We want to cease actions that, in the long run, are detrimental to our token while also introducing changes to our current staking method that will prove beneficial both as a short and long-term solution, while also harnessing the flexibility that the fall of the Multichain Bridge brings.
We are also observing market trends and we are aware that streamlining staking models has become a sort of standard nowadays.
As we prepare for the next bullish market phase, we view this migration as the most fitting approach to further scale our solutions, and we want to keep safeguarding our community interests as the prime directive behind all of the changes that are going to happen in the Synapse Network.
Why do we consider this particular solution appropriate?
The current staking model is rather complex and, most importantly, not deflationary. The proposed changes aim to:
- simplify the existing staking process for both current and new members of our community
- make the model more transparent and clear
- prevent the increase of token supply on the new network
- introduce a new lowered APR staking model
What will happen to the currently staked tokens?
As per the initial DAO vote, all current staking activities will be paused, and the $SNP tokens on the new network will be distributed to the community by the claiming contract. We will announce the date of a process closer to the token migration.
What will happen with the current staking rewards?
Staking rewards will be distributed to community members per their staking allocations. The distribution of staking rewards will be determined based on the snapshot that will be made accordingly with the token migration.
Initial schedule
The voting period starts today and will run until 16th of November, 5:59PM UTC.
Your participation is crucial, and we remind you to carefully read our questions before you cast out your vote.
How many DAO tokens do you have to cast your vote?
Check the snapshot info here
Tokens were distributed directly to your wallets on 27th of October.
Your Vote Shapes Our Path
Your participation in this DAO voting process is vital in shaping the future of the Synapse Network. Don’t miss this opportunity to make your voice heard and contribute to our continued growth.
If you would like to get some more information about the DAO questions, check out our official Telegram channel.
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.
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