Activist investor Benjamin Celermajer has outlined a plan to completely overhaul and improve the governance and day-to-day operations of the Synthetix protocol. The plan has garnered 99.4% support from the community since being presented.
Key Changes
Celermajer's plan includes redesigning the SNX token, implementing new revenue-generating methods for the protocol, and rolling out new contracts on chains like Ethereum and Solana. The first major change involves a complete redesign of the SNX token and enhancing the functionality of the recently launched Layer-2 network Snaxchain. Furthermore, the overhaul aims to add more functionality to the SNAX token, migrate SNX to Layer-2, and launch a stablecoin on this network.
Governance Issues
One of the core issues the SR-2 proposal targets is the current governance model. Currently, Synthetix is governed by three separate councils: the Spartan Council, Grants Council, and Treasury Council. Celermajer believes this model is too fragmented, leading to incomplete decision-making and inefficiency. If approved, SR-2 will consolidate all governance power into a single Spartan Council consisting of seven seats with equal voting power.
Conclusion
Celermajer believes these changes can help Synthetix regain its leadership position in the DeFi sector. He emphasized that consolidating governance will help deliver new products faster and restore confidence in the protocol.
Implementing the overhaul plan could significantly enhance the internal operations of Synthetix and strengthen its market position. The community's 99.4% approval underscores the importance and necessity of consolidating control into a unified management structure.
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