Victor Ugochukwu · Dec 14, 2020 . 5min read
Synthetix decommissions its Foundation, moves to complete decentralization
Synthetix has announced that the decommissioning of its foundation has almost concluded. Its functionality going forward will be split into three DAOs.
By Shilika · Jul 28, 2020 . 4min read
Synthetix has announced that the process of decommissioning the Synthetix Foundation has begun. The organization had announced earlier that it would be transitioning to decentralized governance. The method of decommissioning has been underway for the last six months. They are now in the final stages.
Synthetix is a crypto-asset backed network that enables the creation of on-chain crypto assets. It has its own exchange. It has also built a dApp called Mintr. Users who hold synthetic assets can use the app to mint their ‘synths’ against the value of SNX tokens. The USD will back the SNX tokens. They can then commence trading.
Synthetix has understood that relying on a non-profit foundation generates a net negative. As a result, they are moving towards a DAO model. Their operations will be under the control of three distinct DAOs—namely, protocolDAO, grantsDAO, and synthetixDAO.
The protocolDAO will be responsible for modifying and upgrading the protocol. The approval of all modifications is via a community consensus process. The protocolDAO will also be responsible for the operational security of the protocol.
The grantsDAO will handle the funding of public goods in the Synthetix ecosystem. It will do this by involving the community members in the SIP(Systematic Investment plans) process by rewarding SIP champions. It will also create funding initiatives like snx.tools and SNX Link. The grantsDAO will be governed by community members to ensure that funding of grants is inclined with community interests.
The synthetixDAO will manage and deploy funds to contributors and other project needs. Up until now, the foundation has been a significant recipient of the funds.However, that will no longer be the case. Any single entity will be able to apply for funding through an open process.
Follow Cryptodose for more updates.