Synthetix Drops Derive Acquisition, Relaunches Simplified Mainnet SNX Staking with 5M SNX Reward Pool

Published: 2025-05-28 17:50:19 |

Synthetix has withdrawn its SIP-415 proposal to acquire Derive, following community and stakeholder concerns over the $27 million deal’s structure and valuation, which planned to use 29.3 million newly minted SNX to integrate Derive’s off-chain matching into Ethereum Mainnet derivatives. Governance alignment remains a priority for Synthetix after shelving the proposal. Concurrently, Synthetix relaunched SNX staking on Ethereum Mainnet through the new 420 Pool, substantially simplifying participation by removing the need to manage debt positions, collateral ratios, or face liquidation risks. The new staking structure offers a 5 million SNX reward pool, with rewards accruing from May 28, 2025, and locked for 12 months, distributed pro-rata based on stake size and duration. Over 50% of the entire SNX supply is already staked in the protocol, underscoring strong demand and market confidence. Stakers can withdraw their principal after a 7-day cooldown at any time, but early exits result in a penalty only on the rewards, not on the principal. This staking upgrade represents Phase 2 in Synthetix’s protocol evolution, aiming to lower entry barriers, attract new users, and better align incentives for long-term holders ahead of the anticipated Synthetix V4 launch. Notably, Infinex will not support SNX staking at launch but plans to add support soon. The changes are expected to enhance market engagement, liquidity, and overall protocol stability, while strengthening governance responsiveness to community sentiment.

Bullish

The withdrawal of the Derive acquisition proposal alleviates concerns over potential dilution and misalignment, reflecting responsiveness to community governance—a move likely to sustain investor confidence. The relaunch of SNX staking with simplified mechanics, significant rewards, and streamlined exit options lowers barriers for entry and encourages both existing and new holders to participate. With over 50% of SNX already staked, the protocol signals robust demand and long-term commitment. The timing ahead of the Synthetix V4 upgrade, which promises further benefits, adds positive momentum. While there are no immediate integrations with Infinex, the program’s design and increasing staking rates are expected to improve liquidity, stability, and bolster bullish sentiment for SNX.