Synthetix
$5.36 9.67%
SNX · 17w

What would happen to the value of synths if too many people just hold them for the long term and note trade?

*not* trade \* It seems as though the underlying value of sBTC or any other Synth is backed by the desire to trade synths. Since, the only reason people buy SNX and what gives it value is, people want to trade *any* asset for any other asset. But what if the amount of people who hold for the long term enter the space and, people buy say sBTC and hold it for years? Of course there will always be an incentive to use the synthetix exchange, and there will be a lot of fees generated, but there are still many buyers who just buy and hold and would rarely use the exchange. A scenario where, Synthetix becomes so big, and the prices for so long on synths are so stable, that people have enough confidence just to hold the synthetic asset and never trade it. Wouldn't there need to be a mechanism to "force" the holder of the synth to trade it within a certain timeframe or they are charged fees? Or the synth *slowly* gets burned at like 1% a year?
Go to self.synthetix_io
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