- Enhance the utility of $SYN by emphasizing its role in network security and staking, rather than merely as a gas token.
- Update official documentation to reflect these changes and the DAO's strategic direction.
- Address the declining price of $SYN and better align with the interests of the community, supporters, and investors.
Details of the Proposal:
1. Network Security & Staking:
- Gas Fees Management: Retain Ethereum as the primary gas token for both L1 and L2 in SIN and Synchain. This will simplify UI/UX and reduce barriers for adoption.
- $SYN as Security Bond: Agents/Notaries/Guards post a bond through single-sided staking of $SYN. This elevates $SYN's utility, emphasizing its significance in maintaining network security.
- Tip Allocation: As SIN and Synchain usage proliferates, gas fees (paid in Ethereum) will serve as tips. A portion of these tips could be used to buyback and burn $SYN, which can introduce a deflationary mechanism, benefiting long-term $SYN holders.
2. Update Official Documentation:
- Document the evolved role of $SYN as primarily a security token, enhancing its stake in network security and potentially earning rewards from system usage.
Rationale for the Proposal:
- Bolstering Network Security - Having $SYN tied to network security through staking ensures that the token has inherent value, safeguarding the network and potentially generating rewards for its holders.
- Addressing the Declining Price of $SYN - Moving away from the proposal of using $SYN exclusively as a gas token and emphasizing its role in network security can create a more stable and sustained demand for the token.
- Attracting and Retaining Investors - A clear utility for $SYN that's intricately tied to the growth and security of the network can attract and retain investors, as they can witness a direct correlation between the network's success and the token's value.
- Community and Stakeholder Alignment - This new approach resonates more closely with community feedback and aligns with stakeholder interests, ensuring that $SYN has a distinct and valuable role within the ecosystem.
The Synapse Protocol, through Synapse Chain and SIN, is a beacon in the realm of blockchain interoperability. Reorienting the utility of $SYN to emphasize its role in network security and staking not only addresses the concerns over its price but solidifies its integral function in the ecosystem. This proposal signifies a renewed commitment to our community, setting a clear and strategic path for $SYN and the Synapse Protocol.