Introduce a debt-free staking mechanism for SNX holders on mainnet that distributes 5 million SNX in rewards over 1 year. Users can unstake at any time, but earned rewards are subject to a time-based penalty if they exit before the end of the program.
\nThis SIP proposes a new SNX staking initiative designed to be simple, transparent, and flexible. Users stake SNX and earn rewards pro-rata over 1 year. If users unstake before the program concludes, a penalty is applied to their earned rewards, starting at 100% and decreasing linearly to 0% throughout the staking period.
\nThe penalty system incentivizes long-term alignment while allowing liquidity at any time. Forfeited rewards will remain undistributed the Treasury.
\nHistorically, SNX staking required users to manage sUSD debt, creating complexity and friction. With the launch of the 420 Pool and protocol-managed debt, there is an opportunity to offer a simple, flexible staking mechanism to engage passive SNX holders during the transition to Synthetix V4.
\nThis initiative provides yield to SNX holders without the burden of debt, encourages long-term participation, and ensures Treasury recapture of forfeited rewards in case of early exit.
\nThis mechanism offers several key benefits:
\nIt creates a smooth glidepath toward long-term SNX holding without locking users into rigid structures.
\nStaking will occur via the existing TreasuryMarket contract. Reward logic will be calculated offchain.
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