Synthetix has canceled its $27 million plan to acquire crypto options platform Derive following negative feedback from the community. Concerns centered around the proposed exchange rate of 1 SNX token for 27 DRV tokens, with some users arguing that Derive generates more revenue than Synthetix, making the valuation seem inadequate. Synthetix's strategy lead, Ben Celermajer, acknowledged that the acquisition proposal did not resonate with the community and that it would not proceed as intended. Other issues raised included a three-month token lock-up period and the potential dilution of Derive's value due to Synthetix planning to increase its supply of SNX tokens significantly. Users expressed extreme concern over the implications of the deal on Derive's future and its independent operations since rebranding from Lyra in 2021. Synthetix aims to explore future opportunities for building a decentralized derivatives platform but has decided not to move forward with the acquisition proposal for now.

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