As reported by Cointelegraph, an activist investor’s initiative to completely transform the decentralized finance protocol Synthetix has garnered significant support from its community. The SR-2 proposal, introduced by Benjamin Celermajer on September 25, aims to rectify critical governance and operational issues that have impeded Synthetix’s growth, even as the broader market sees a resurgence.

The proposal has achieved an impressive 99.4% approval rate from 200 SNX token holders, representing 18 million SNX tokens. It outlines a detailed strategy for revitalizing the project, which includes redesigning the token, developing new revenue streams, and launching contracts on additional networks like Ethereum and Solana. The ultimate objective is to cultivate a culture of innovation and quick execution, thereby restoring Synthetix’s reputation as a leader in the DeFi space.

Key elements of the overhaul involve revamping the SNX token and improving the functionality of Synthetix’s Layer-2 network, known as Snaxchain. The plan also includes migrating SNX to this Layer-2 solution, introducing a native stablecoin, and establishing a presence on Solana to tap into its vibrant community. Celermajer anticipates that many DeFi protocols will shift to Solana in the future, citing its strong community support despite previous challenges.

Another essential component of the SR-2 proposal addresses the current governance structure, which is divided among three councils: the Spartan Council, Grants Council, and Treasury Council. Celermajer contends that this fragmented approach leads to inefficiencies and incomplete decision-making. The proposal aims to consolidate governance into a single Spartan Council with seven equal voting seats, promoting accountability and thorough discussion of strategic and operational matters. This change is expected to expedite product development and help Synthetix regain its prominence in the DeFi sector.

Currently, Synthetix’s total value locked (TVL) stands at $262 million, reflecting a dramatic 89% decline from its peak of over $2.9 billion in February 2021, according to DeFiLlama. The proposed reforms seek to reverse this downward trend and breathe new life into the protocol.