We’re excited to announce the launch of on-chain governance for the Synternet. This milestone marks a significant step forward in Synternet’s roadmap to ultimately be a fully decentralized protocol governance.
Here’s what’s happening:
- We have made voting easier for token holders when tokens are delegated.
- Two Proposals are being submitted by Synternet:
- Inflation Reduction Proposal
- Burn of unmigrated tokens (currently @ 130m)
- Token Center now has voting features as well as live details on tokenomics.
Governance Portal is now open to all $SYNT stakers, giving the community a direct voice in the evolution of the Synternet protocol. In open protocols, token holders are empowered to create proposals for voting. Synternet is committed to expanding governance functionality and direction of the network as an open, decentralized protocol, giving its community a direct role in shaping the features. Once a proposal is active, $SYNT delegators can cast their vote during a 5-calendar-day voting window, helping define the priorities and roadmap of the network.
Upcoming Proposals
Proposal: Burn of Unmigrated Tokens
At the genesis of the $SYNT token (27.06.2024), the total supply of the legacy token was minted and placed in the Synternet Token Treasury on the Cosmos chain. Migration of the legacy token is open for one year, after which Synternet will no longer support automatic migration via its website.
Migration ends on 30.06.2025, and it is evident that not all legacy tokens will be migrated.This proposal aims to remove the unmigrated tokens from the total $SYNT supply through a burn mechanism. If executed today, the proposal would reduce the total supply by 130M $SYNT, lowering it from 1.14B back to 1B $SYNT.
Recommendation:
The Synternet Team has made the proposal and is recommending a “Yes” vote.
The unmigrated tokens represent lost tokens, and we now have the opportunity to significantly reduce the total supply. Since the total supply is used to calculate inflation, a reduction of nearly 10% will also lead to a meaningful decrease in inflation. This is a clear step toward maximizing tokenholder value.
Proposal: Inflation Reduction
This proposal aims to reduce the annual inflation of $SYNT tokens allocated to the treasury and validator rewards over the next four years. Each year, $SYNT inflation will decrease according to the schedule outlined in the chart below.
The goal is to limit the number of new tokens entering circulation. By tightening the token supply, Synternet is aligning incentives with the long-term interests of the community and maximizing value for $SYNT token holders. Reducing inflation is an important mechanism in reducing circulating supply. Other mechanisms include buying back tokens and burning them. Both may be applied in the future to manage circulating supply and maximizing token holder value.
Recommendation:
The Synternet Team has made the proposal and recommends a “Yes” vote.
Inflation is ultimately a force that reduces tokenholder value. While it played an important role early on, before the chain was operational, we now turn to revenue and growth as the basis for rewards – something that should be reflected in the rising value of the token itself. We encourage all tokenholders to vote “Yes” and help us collectively increase the value of Synternet.
The Future Looks Bright
The proposed adjustments come as part of Synternet’s broader strategy to reinforce the economic foundations of its decentralized infrastructure, with the aim of increasing resilience, reducing sell pressure, and encouraging more strategic engagement from stakeholders.
Further details will be available on the Synternet governance portal as the proposal moves forward.
