Synthetix community moves to decommission depegged sUSD stablecoin

The community behind the decentralized synthetic asset protocol Synthetix (SNX) is moving to completely decommission its native stablecoin, sUSD. According to The Defiant, the community has given final approval to governance proposal SIP-423, which outlines a plan to compensate holders by exchanging each sUSD for four SNX tokens. Synthetix plans to freeze the sUSD contract and proceed with redemptions based on face value. The distributed SNX will be subject to a one-year lockup, followed by a one-year linear vesting period. The proposal also includes a conditional USDT reward for sUSD holders. If the protocol generates over $10 million in revenue during the two-year lockup period, 25% of that revenue will be distributed to former sUSD holders. The move comes after sUSD, which is theoretically pegged to $1, saw its depegging worsen since October of last year, with its value falling to approximately $0.2484. Synthetix made several unsuccessful attempts to restore the dollar peg before opting for decommissioning.