Synthetix Overhaul Plan Gains Overwhelming Support

According to Cointelegraph, an activist investor's proposal to completely revamp the decentralized finance protocol Synthetix has received overwhelming support from voters. The SR-2 proposal, introduced by Benjamin Celermajer on September 25, aims to address significant flaws in Synthetix's governance and daily operations, which have hindered its growth and adoption despite a broader market resurgence. Celermajer's plan has garnered 99.4% approval from 200 SNX holders, representing 18 million SNX tokens. The proposal outlines a comprehensive strategy to rejuvenate the project, including a token redesign, new revenue capture methods, and deploying new contracts on additional chains like Ethereum and Solana. The ultimate goal is to foster a culture of innovation, rapid iteration, and fast shipping, thereby restoring industry confidence in Synthetix as a DeFi leader. Key changes in the overhaul include redesigning the native SNX token and enhancing the functionality of Synthetix's Layer-2 network, Snaxchain. The proposal also plans to migrate SNX to the L2 network, introduce a native stablecoin, and deploy the protocol on Solana to leverage its strong community. Celermajer believes that many DeFi protocols will eventually migrate to Solana, despite its past issues, due to its robust community. Another critical aspect of the SR-2 proposal is addressing governance inefficiencies. Currently, Synthetix is governed by three separate councils: the Spartan Council, Grants Council, and Treasury Council. Celermajer argues that this fragmented model leads to incomplete decision-making and inefficiency. The proposal seeks to consolidate all governance power into a single Spartan Council with seven seats, each having equal voting power. This consolidation aims to ensure accountability and thorough deliberation on strategic, commercial, and operational decisions, thereby enabling faster product delivery and a stronger return to relevance in the DeFi sector. The total value locked (TVL) on Synthetix has significantly declined, currently standing at $262 million, an 89% decrease from its all-time high of over $2.9 billion in February 2021, according to DeFiLlama data. The proposed changes aim to reverse this trend and reinvigorate the protocol.