Catenaa, Monday, May 05, 2025- Synthetix founder Kain Warwick is urging SNX token stakers to adopt a new incentive mechanism, warning that refusal to do so may trigger punitive measures within the protocol.
In a recent post on the Synthetix governance forum, Warwick stated that stakers who fail to migrate to the V3 staking framework—an upgrade designed to streamline reward distribution and improve capital efficiency—could be met with what he called “the stick.” While details of the consequences remain unclear, Warwick emphasized the urgency of aligning with the new system.
“The carrot is over,” Warwick said, referencing incentives previously used to encourage voluntary adoption. “It’s time for stakers to decide if they’re on board with the protocol’s future—or in the way of it.”
The upgraded V3 architecture introduces a more modular staking environment and aims to simplify participation in derivatives markets built on Synthetix.
The protocol’s developers argue that V3 will boost long-term sustainability by automating reward allocation and reducing dependency on manual governance.
Synthetix, one of the earliest decentralized finance (DeFi) protocols, allows users to mint and trade synthetic assets pegged to real-world currencies, commodities and stocks. SNX token holders who stake their tokens play a vital role in collateralizing these synthetic assets and earning protocol fees in return.
The proposal has sparked debate within the community, with some calling for more clarity on the risks and benefits of V3, while others warn that coercive tactics could alienate long-term supporters of the protocol.
