During the Indonesia Blockchain Week 2020 some experts talked about obtaining passive income through staking. In addition, they talked about DeFi, and how this sector of the crypto coin industry is progressing. This is the continuation of the summary of the intervention of Jordan Momtazi, COO of Synthetix, where he clarified that they intend to offer BTC guarantees.
What are the risks of lending with cryptomoney?
Staking and obtaining passive income through crypto-currency
Staking is the process of actively participating in the validation of transactions on a participation test (PoS) blockchain or to provide liquidity to a protocol. In these blockchains, anyone with a cryptoactive can validate transactions and earn Staking rewards.
From the customer’s point of view, Staking is similar to an interest bearing savings account at a traditional bank. Apart from loans with crypto currencies, Staking is currently the most popular method of obtaining passive income with crypto assets.
If you read the previous publication we made in CryptTrend, you know that Synthetix is one of the companies most interested in promoting DeFi technology and passive income through staking. Here we bring you some more information about their current status and future plans.
How did you start decentralizing to Synthetix?
Momtazi clarified that it is very difficult to start completely decentralized from day one. As an example she mentioned that they only recently dismantled their foundation. „We no longer have a legal entity and our government is really managed through three teams,“ she said.
The first is the protocol staff that actually manages the codes and updates. There are several major contributors who control this protocol.
The second is the staff is essentially the treasury, which manages the operational costs: it pays the major contributors and actually manages on behalf of the community. And the third is the grantmaking staff, which is designed to support and finance public goods.
This group will support marketing activities, creation of tools or a project that can help the protocol in some way. He added: „We have already funded several projects. One of them is SNX that I mentioned earlier. It was funded by the grant staff.
On the other hand, he mentioned that the improvement process of Synthetix is essentially carried out by the community or by the collaborators who send proposals of update ideas. These ideas are discussed not only in the GitHub repositories, but also in Discord, which is where most of his community participates.
According to Momtazi, this is a really important part of the DeFi. „This is a part that I think is going to evolve, because there’s a lot to learn in terms of what’s best,“ he explained later.