Synthetix has filed a governance proposal, SIP‑423, to retire its sUSD stablecoin and reimburse holders with vested $SNX tokens.
Proposal Mechanics
The plan, authored by founder Kain Warwick and core contributor Benjamin Celermajer, freezes the sUSD contract and converts each sUSD token into four $SNX tokens. The conversion assumes a $SNX price of $0.25, while sUSD is valued at its intended $1.00 face value. $SNX awards carry a one‑year lock‑up followed by a linear vesting period of another year, with the claim window opening roughly a year after the freeze.
Four Core Elements
First, a snapshot will record all sUSD balances on Ethereum and Optimism at a governance‑defined block. Second, the sUSD contract will be officially retired. Third, the existing Debt Jubilee under SIP‑420 will be restructured, closing the 420 Pool, removing sUSD staking ratio requirements, and offering debt participants a choice between a four‑year lock with a one‑year vest or an early exit by repaying remaining debt. Fourth,