Synthetix Releases SIP-423 Proposal to Gradually Phase Out sUSD and Reform SNX Staking Mechanism

Foresight News reports that Synthetix core contributors Kain Warwick and Benjamin Celermajer have jointly submitted the SIP-423 proposal, which plans to gradually phase out the sUSD stablecoin and introduce significant reforms to the "debt amnesty" plan and the SNX staking mechanism.

The main contents include freezing sUSD on both the Ethereum mainnet and Optimism, halting transfers, minting, and burning, and taking a snapshot of holders. Eligible holders can exchange newly minted SNX at a ratio of 1 sUSD = 4 SNX (with a 1-year lock-up and 1-year linear release); the original sUSD staking ratio requirement will be cancelled, and the remaining debt will be moved into a new staking model (4-year lock-up plus 1-year linear release), with participants able to exit early by fully repaying their debt; staking will be decoupled from old sUSD obligations, and stakers will no longer need to hold or stake sUSD. Additionally, if the protocol generates more than 10 million USD in income within 2 years, 25% of that will be distributed to former sUSD holders in USDT (with specific parameters adjustable via SCCP).