Synthetix DAO has put forward a governance proposal to acquire Kwenta, its ecosystem’s main perpetuals and derivatives trading front end, in a token-for-token deal and to relaunch a native Synthetix Exchange. The plan, formalized as SIP-411 on the Synthetix side and KIP-138 on the Kwenta side, would see Kwenta tokenholders swap 1 KWENTA for 17 SNX, implying a valuation of around $13.2 million for Kwenta and funded by minting up to 9,050,375 new SNX (about 2.8% token inflation over one year). Acquiring Kwenta would transfer to Synthetix all of Kwenta’s smart contracts, code, IP, domains, front ends, operations, and treasury assets. The SNX issued to KWENTA holders would be locked for three months and then vest linearly over nine months. Strategically, the proposal is aimed at reuniting two projects that were previously separated so Kwenta could operate as an independent front end focused on trader experience for Synthetix-based derivatives. Synthetix describes the move as a way to remove fragmentation between the SNX and KWENTA tokens, consolidate value and governance around SNX, and give the protocol direct control over a branded exchange interface, user experience, and roadmap. The DAO argues that owning the front end should improve branding, coordination between liquidity provision and trading UX, operational efficiency, and long-term revenue potential for SNX holders, after Kwenta has driven tens of billions of dollars in derivatives volume using Synthetix liquidity. The transaction will only proceed if it is approved by both the Spartan Council (Synthetix governance) and the Kwenta Council, making this a significant governance and ecosystem realignment for decentralized derivatives on Synthetix.

AI-generated background, compiled from web sources — not editorial content.

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