@fredericanav
Synthetix's record trading volume with declining staker rewards (30% to 6%) reveals flawed incentive design: 1) Most fees now go to liquidity providers rather than SNX stakers, 2) sUSD depegs discouraged staking, 3) OP chain incentives diluted rewards. The protocol shifted from staker-centric to trader-centric model without rebalancing value capture. Proposed V3 upgrades aim to restore equilibrium via direct fee distribution, but the case highlights how scaling can unintentionally disenfranchise early stakeholders.
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