Question 1

What is SNX?

Accepted Answer

SNX is the token of the Synthetix protocol, not company equity. Synthetix provides liquidity and infrastructure for on-chain derivatives; SNX can be used as collateral in related mechanisms. Holding SNX does not automatically constitute equity, dividend rights, or redemption rights at face value.

Question 2

What is the relationship between SNX and sUSD?

Accepted Answer

SNX can be locked as collateral to support sUSD minting, but this is not a simple exchange. Collateral providers establish a position that includes both SNX collateral assets and a protocol debt relationship; changes in the SNX price, debt value, and protocol rules can all affect the position's status. Holding SNX and using SNX as collateral to mint sUSD are different states with different risks.

Question 3

Will SNX continue to be issued in the same way as before?

Accepted Answer

SNX is no longer continuously issued under its previous regular inflation arrangement. After SIP-2043 was implemented, Synthetix ended the mechanism of incentivizing collateral participants with newly issued SNX. The end of inflation does not mean that all tokens are immediately tradable, nor does it guarantee price; locking, migration, burning, and market trading can still affect different supply measures.

Question 4

How do SNX buybacks and burns work?

Accepted Answer

The buyback-and-burn path in the Andromeda release notes is as follows: designated Base fee revenue is used to purchase SNX, and the acquired tokens are then burned, removing that portion from circulation. It is not a direct distribution of proceeds to every holder, and its scale depends on actual revenue and applicable rules. The 2026 roadmap mentions trading revenue for sUSD and SNX buybacks; this should be treated as a roadmap arrangement and must not be described as already completed or permanently unchanged.

Question 5

What does Synthetix V3 mean for SNX?

Accepted Answer

V3 is Synthetix's version evolving toward a more modular collateral and liquidity architecture; the key point is that SNX continues to be used in the migration from V2X to V3, rather than automatically creating an entirely new asset. The migration plan describes the protocol's direction; whether a user has migrated depends on the applicable process, the network where the assets are located, and contract or frontend support at the time, while legacy positions and eligibility do not necessarily continue under the same conditions.

Question 6

Does holding SNX automatically earn protocol fees?

Accepted Answer

Protocol-fee-related distributions are intended for liquidity providers or collateral participants that meet the rules, not for every SNX wallet balance unconditionally. Participation eligibility, distribution sources, and specific rules may change with protocol versions or governance decisions, so SNX should not be treated as traditional stock or a fixed-income product.

Question 7

Which mechanisms may affect SNX supply and demand?

Accepted Answer

SNX supply and demand must be transmitted through specific mechanisms: if collateralization and liquidity participation require acquiring and locking SNX, or if buyback rules are actually implemented, demand or tradable supply may change. However, increased protocol usage does not necessarily create buying pressure or price appreciation; revenue, rules, participation choices, market liquidity, and risk appetite all affect the outcome.

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