What is SNX cryptocurrency?

The simple math behind staking is this: if the value of the SNX token increases, you’ll be able to mint more . And if the value of the SNX token decreases, your minted value and contribution to global debt will remain the same. However, a decrease in SNX value may complicate your ability to claim rewards.

Synthetix Network Token (SNX) is an Ethereum token that powers Synthetix, a decentralised synthetic asset issuance protocol . Synthetic assets are minted when token holders stake their SNX as collateral using Mintr, a decentralised application for interacting with the Synthetix contracts.

SNX plays a vital role in the Synthetix platform. SNX tokens are used as collateral when you want to create synths , which are synthetic assets that you can trade with other protocol users. In this way, you don’t actually hold the underlying asset, but rather trade with what it’s worth.

Framework Ventures is the largest staker (27-8-2020) of the Synthetix protocol outside of the founding team. Kain has been open in saying he is the largest holder of SNX (6-2021).