In March 2019 we announced a major update to the Synthetix monetary policy: the addition of SNX staking rewards. It was then updated in December 2019 through community governance. These updates ensure that from March 2019 to August 2023, the total SNX supply will increase from 100,000,000 to 260,263,816, with a weekly decay rate of 1.25% (from December 2019). From September 2023, there will be an annual 2.5% terminal inflation for perpetuity.
Why staking rewards were implemented
We outlined in detail here
why this change to the monetary policy was implemented. The primary reason is that in the early stages of a project, much like Bitcoin’s block rewards, staking rewards provide an incentive for people to contribute to the system by performing an action the system requires, and that incentive is receiving more of the currency itself. During the project’s early stages, before the system has generated significant traction, offering SNX stakers only Synth exchange rewards is insufficient until it generates more Synth exchange rewards.
How it works
Each week, each SNX staker can claim their proportion of the weekly SNX staking rewards. Their rewards are calculated by measuring what proportion of the total Synth supply they have minted against their SNX. For example, if Alice has minted 1000 sUSD, and there is a total of 1,000,000 sUSD minted, then she receives 0.1% of the staking rewards.
SNX is added to the supply each week. The snapshot for the first week (March 12-18) to determine who was staking their SNX was taken on Wednesday March 19. The snapshot for each subsequent week is taken each Wednesday evening at about 8pm (AEDT).
SNX rewards can be claimed for up to two weeks in arrears (this period may be changed in the future). Any unclaimed rewards (beyond the given two weeks) are simply added back into the entire pool of SNX rewards to be distributed in the next reward period.
How to claim
Claiming your SNX staking rewards can be done through Mintr
, our dApp for SNX holders. You can access it through Metamask or directly using a Trezor or Ledger hardware wallet. Once you’ve connected your wallet, head to the ‘Rewards’ tab, where you can withdraw your rewards.