Synthetix looks to turn off the SNX money printer once and for all

cointelegraph.com:

The founder of decentralized finance (DeFi) protocol Synthetix, Kain Warwick, has submitted a proposal that would turn off very high yield returns for SNX stakers and cap the total SNX token supply at 300 million. 

The Synthetix protocol allows traders to issue synthetic versions of crypto native assets, traditional financial assets, and commodities on the Ethereum and Optimism networks.

In an Aug. 25 Synthetix Improvement Proposal (SIP) Warwick explained that SNX reward inflation was initially intended to “bootstrap the network”, however, he believes it’s no longer necessary as they can generate sustainable fee yields from atomic swaps.

monthly trading volume on @synthetix_io pic.twitter.com/QCWYbB5Xu4

A big rise in fee revenue has been a result of DeFi protocols 1inch and Curve starting to use the Synthetix platform to conduct atomic swaps, bringing in more traffic to the protocol. In June the protocol surpassed $1 million in daily fees - which was four times the amount Bitcoin was making. 

According to cryptofees, Synthetix is currently taking a seven-day average of $158,857 in fees, which is a little bit below Bitcoin’s seven-day average of $222,651.

Stakers receive all the SUSD stablecoin fees from users of the protocol. Currently, the APY for stakers due to SNX rewards and SUSD fees is around 67%, but this is likely to fall closer to 15%-20% if it's based entirely on ‘real yield’ from SUSD fees alone.

In a Twitter post on Thursday, Warwick — also known as the “father of modern agriculture” for popularizing DeFi yield farming — revealed that he believed following informal discussions that ‘SIP-276: Turn off the money printer’ had a “decent chance” of being passed. A formal presentation about the proposal is planned for