TechFlow News, June 23: According to The Defiant, Synthetix governance proposal SIP-423 proposes the formal retirement of the stablecoin sUSD. The plan involves freezing related contracts and distributing staked SNX compensation to eligible holders at a rate of 4 SNX per sUSD. Under this proposal, SNX is valued at $0.25 and sUSD at its $1.00 face value; the compensation tokens carry a one-year lock-up period followed by a one-year linear vesting schedule.
The proposal also includes a restructuring of the existing debt forgiveness mechanism and an additional provision: if the protocol generates over $10 million in revenue during the two-year lock-up period, 25% of that revenue may be distributed in USDT to historical sUSD holders who prefer cash compensation. SIP-423 is currently pending vote.
This proposal follows prolonged and severe de-pegging of sUSD, which currently trades at approximately $0.25—down roughly 28% over the past seven days and 61% over the past thirty days. It marks the first time Synthetix has proposed abandoning efforts to restore sUSD’s peg and instead pursuing an orderly exit.
