Synthetix is now under control of three distinct DAOs as it made the transition to a fully-decentralized protocol outlining the growing trust in the DeFi sector. As we read in some of the best cryptocurrency news sites, the foundation has been decommissioned and the governing body of the platform was stripped of all power.
Synthetix is now under the control of three different DAOs despite being a leading project in the Defi space. The platform announced today the end of a six-month process reducing the Foundation’s role and finished the process of transitioning to a decentralized protocol. The Defi project announced the decommission today and that while removing control of the Foundation started at the beginning of the year, this has always been the goal of the protocol.
Last year, the company stated that they intended to become the case study for how crypto projects can transition the control from the core team to the token holders:
“We have worked hard to implement this transition and with the help of a number of projects in the space and our community we are pleased to be taking this next step towards token holder governance.”
The Synthetix protocol is under the control of three DAOs, the DAO protocol that controls upgrades and configurations, the GrantsDAO which controls the funding in the ecosystem, and the SynthetixDAo which manages funds and deploys them to contributors and other projects. Removing control from the foundation is a huge step for the platform for also for the entire DeFi ecosystem as a whole. Following the huge DAO hack back in 2016, decentralized autonomous organizations seem to have been avoided by the community. The incredible growth of the ecosystem in the past year brought DAO back into the spotlight.
According to the latest Synthetix announcement, a few innovative security mechanisms have been introduced into the protocol that will enable members of the protocol to pause the entire system and to respond to hack attacks or bugs for a limited time. This seems to have brought the needed confidence back into the community as the native token of the protocol, the Synthetix Network Token jumped about 6% right after the news.
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