Synthetix Network

This VCM represents value capture through automated token burning funded by trading fees generated from the multi-chain Andromeda Release. Unlike traditional dividend distributions that directly accrue value to token holders, this mechanism increases the relative value of remaining tokens by systematically reducing the total supply. When SNX tokens are burned, each remaining token represents a larger percentage of the total supply, creating an appreciation effect similar to a stock buyback in traditional finance.

This VCM represents value capture through a collateralization system where stakers collectively secure the protocol's solvency. By staking SNX and assuming system-wide risks, participants earn trading fees generated from synthetic asset exchanges or perpetual futures trading.

This VCM represents value capture through participation in protocol governance, where the amount of tokens staked determines voting power. This results in a system in which those with the most economic interest have the most influence over protocol direction.