Founder Kain Warwick confirmed the original SNX-backed sUSD will be retired after more than a year below its dollar peg. Holders can redeem at 4:1 SNX, a premium to par, paired with a lockup.

The decision follows v3 exchange failures, slow v4 scaling, and no native yield on sUSD. Supply was cut from over $1B in an orderly reduction, but roughly $50M of debt remains, more than current revenue can service.

With the treasury unable to keep buying back sUSD indefinitely, Synthetix is choosing an orderly wind-down over an open-ended defense of the peg.