PANews, June 23 – According to The Defiant, Synthetix governance has voted to gradually retire sUSD under proposal SIP-423, paying locked SNX to holders at a ratio of 4 SNX per sUSD. The proposal, put forward by Synthetix founder Kain Warwick and core contributor Benjamin Celermajer, will freeze the sUSD contract and repay holders at face value. sUSD is currently trading at approximately $0.25, significantly de-pegged from its $1 target.

SIP-423 consists of four parts: a holder snapshot, sUSD retirement, SIP-420 debt restructuring (closing the 420 pool and giving debt participants the choice of a four-year lock-up or early repayment exit), and SNX staking reform (deferred to a separate version). SNX tokens will have a one-year lock-up period from the freeze date, followed by a one-year linear unlock. If Synthetix generates more than $10 million in protocol revenue during the two-year lock-up period, 25% may be distributed as USDT to holders who prefer cash.