Synthetix governance has moved to retire sUSD, proposing to pay all holders back at face value in vested SNX under SIP-423, introduced June 12. The stablecoin now trades at roughly $0.25 against its $1.00 target, per CoinGecko and DefiLlama.
Synthetix founder Kain Warwick and core contributor Benjamin Celermajer authored the proposal. Under SIP-423, the sUSD contract would be frozen and deprecated. Each eligible sUSD holder would receive four SNX tokens per sUSD, at a conversion that values SNX at $0.25 and sUSD at its intended $1.00 face value. The SNX tokens carry a one-year lock followed by a one-year linear vest from the freeze date. The claim window opens approximately one year after the freeze.
SIP-423 has four parts. First, a holder snapshot: an audit of all sUSD balances on Ethereum and Optimism at a governance-defined cutoff block. Second, the sUSD retirement itself. Third, a restructure of the existing Debt Jubilee under SIP-420, which would close the 420 Pool, remove sUSD staking ratio requirements, and give existing debt participants the choice of a four-year lock with a one-year vest, or an early exit by repaying their remaining debt in full. The fourth component, SNX staking reform, is deferred to a separate build.
