Synthetix Token (SNX)

The Synthetix Network token (SNX) incentivizes coordination and growth within the Synthetix Network. It has two primary functions: (a) Staking and (b) Governance.


SNX Stakers earn weekly rewards for collateralizing the network. These rewards are paid in two ways. One is from trading fees, which are charged to traders. The other is inflationary rewards, which are newly minted SNX tokens held in escrow for a year. Escrow-locked SNX tokens can be staked during this escrow and provide further rewards to stakers.


Synthetix Stakers are assigned a percentage of debt ownership proportion to their amount of SNX staked. Then their voting weight is quadratically weighted for all but the Treasury Council. Voting is done through the fully on-chain Synthetix Governance Module.