Synthetix (a decentralized finance protocol on the Ethereum and Optimism blockchains) has finished the major changes mentioned under Synthetix Improvement Proposal, SIP-423, indicating a crucial reset for the protocol and ending the chapter of its native stablecoin, sUSD.
SIP 423 Update:
Synthetix Improvement Proposal (SIP)-423 closed a chapter of Synthetix, deprecating our native stablecoin, the founding mission of the original 2017 Havven project.
Following its approval on June 19, SIP-423 has now delivered its primary outcomes:
🔹Retired…
— Synthetix ⚔️ (@synthetix) AUGUST 17, 2026
Following the procedure’s approval on June 19, Synthetix has now delivered its main changes, including the retirement of legacy sUSD, a restructuring of the Debt Jubilee, and a reform of the SNX staking system.
The protocol says that the changes are created to remove endogenous dependencies and facilitate a better path towards scaling its perpetual contracts business on Ethereum mainnet.
Synthetix Retires sUSD and Redevelops Its Debt System
SIP-423 formally deprecates Synthetix’s native stablecoin sUSD, which goes back to the original 2017 Havven project. Protocol described the proposal as a hard reset for the Synthetix ecosystem. As part of the changes, the debt pool has been redeveloped, while the SNX staking mechanism will also be restructured. Synthetix said that staking changes are formed to create a more sustainable long-term base for the protocol.
The proposal also introduces a conversion mechanism for sUSD holders. Under the new structure, SNX is minted at a 4:1 ratio with sUSD, with the converted SNX subject to a one-year lockup period, subsequent to one-year of linear vesting.
Synthetix reported an original SNX supply of 344,939,867.56 tokens. The SIP-423 changes resulted in 236,464,356 new SNX tokens being minted. This brings the total supply to 581,404,223.56 SNX. The protocol has also provided an entitlement dashboard for sUSD holders to check their SNX allocation.
As per Synthetix, users whose sUSD does not appear on the dashboard may have held the asset in a liquidity provider position or an L2 safe.
SIP-423 Sets New Direction for Synthetix Protocol
The fulfillment of SIP-423 represents a big change in how Synthetix intends to function going forward. Rather than continuing to depend on its prior native stablecoin structure and related endogenous mechanisms, the protocol said the reset leaves it with zero endogenous dependencies.
According to Synthetix, the changes are being made to make a more stable approach in scaling the protocol as it is now geared towards being the ultimate perpetual contracts platform on the Ethereum mainnet.
The reform therefore goes ahead of simply discontinuing sUSD. The proposal incorporates the decommissioning of the legacy stablecoin with modifications to the Debt Jubilee and SNX staking, along with the introduction of a new supply system using the sUSD to SNX exchange.
The newly minted SNX from the exchange would not entirely be possible to access for the holders. But, a one-year lock up period followed by a one-year liner vesting period creates a two-year period for the token unlocks.
The supply change is also a noticeable part of the reset. Before the SIP-423 minting, Synthetix listed its SNX supply at 344.94 million tokens. The addition of 236.40 million newly minted SNX takes the stated supply to approximately 581.40 million tokens.
For sUSD holders, the focus is therefore on understanding their SNX entitlement and understanding the associated lock and vesting conditions. The protocol has directed holders towards the dashboard to view their allocation, while noting that some wallet or liquid arrangements may stop sUSD balances from appearing directly.
Synthetix noted that SIP-423 ends a chapter that started with the creation of Havven back in 2017. As the old system of sUSD has been put to rest, along with staking and debt models being completely redesigned, Synthetix is setting this foundation as a basis for the next step. The goal is to forge ahead and not rely on endogenous dependencies anymore.
