Synthetix Network Token (SNX) is the native token of the Synthetix decentralized protocol built on the Ethereum blockchain. The protocol enables the creation of synthetic assets, which are tokens that track the price of various real-world assets like commodities, stocks, and fiat currencies, as well as cryptocurrencies.
SNX is used to collateralize these synthetic assets, and stakers who lock up SNX on the protocol earn a portion of the fees generated from the trading of these synthetic assets. Additionally, SNX can be staked to participate in the governance of the protocol, allowing holders to propose and vote on changes to the network.
The total supply of SNX is capped at 212 million tokens, with approximately 158 million currently in circulation. As an ERC-20 token, it can be stored in any Ethereum-compatible wallet.
As with any investment, there are risks associated with investing in SNX. The value of SNX can be affected by various factors, including but not limited to market volatility, regulatory changes, and technical issues. It is important to do your own research and consider your risk tolerance before making any investment decisions.