Synonym Finance is launching after a merger with New Order DAO, based on a snapshot proposal.  Due to a substantial volume of tokens already held by the NEWO community, we face a potential early oversupply issue. To mitigate this and uphold our commitment to zero dilution for existing NEWO holders, we're introducing SYNO tokens in a controlled manner. As a result of the merger, the existing supply of tokens will be converted to tSYNO via 1:1 basis. NEWO tokens will be converted into staked SYNO (tSYNO) when the token launches and will be eligible for a 10% of fees distribution. As of November 2023, SYNO token is not available on any of the DEXes.

This sequence includes a strategic token staking phase lasting for a 15-month period commencing from the date the SYNO token is launched with an option to unstake earlier with a penalty. If users opt to unstake their staked SYNO before the completion of the 15 month period, the unstaked amount of tokens will be subject to an unstaking penalty. This penalty starts at 90% and declines to 0% linearly over the 15 month period. Burned tokens will go back to the treasury. The penalty distribution can be seen below:

Users that were NEWO token tokers were likely to be locked into veNEWO. As stated in the proposal, address in the veNEWO snapshot will be eligible for an airdrop of a claim token (rCT). Holders of the rCT token receive 50% of value generated by incubated project tokens held in the Synonym treasury that were transferred from the NEWO Treasury , i.e. rewards coming from BTRFLY, Y2K, etc.

The claim token allocation will be capped by the veNEWO balance of the wallet on time of the proposal from the 14th of August 2023 - snapshot link (snapshot of the proposal). Only veNEWO with a non-expired lock at the time of the snapshot are included, and team tokens are excluded from the snapshot.

A user’s claim tokens will be proportional to the size of their veNEWO position that is converted into SYNO. As such, to receive the maximum allocated amount of the rCT token, all NEWO locked under veNEWO should be migrated.

Claims going forward will be proportional to the amount of tSYNO that is maintained in converting user wallets. If a user unstakes tSYNO from their 15 month staking period, they will forgo a proportional percentage of their claims on the treasury reward.

Delegation: Participants in veNEWO have requested to convert their NEWO to tSYNO and receive rCT using a different address than the address in the veNEWO snapshot. There are a variety of reasons for this including users who were using a smart wallet such as Gnosis Safe who won’t be able to generate the same address on Arbitrum were the conversion will take place.Therefore, we are opening up an address “delegation” feature where individuals in the veNEWO snapshot will be able to substitute a new address from which they will convert NEWO to tSYNO and receive their rCT allocation. This is a completely optional step and there won't be any action required from those who were not in the veNEWO snapshot, as their NEWO will be equally convertible from any address, nor does it affect people who want to continue using the same address as they used for veNEWO. Address delegation will be live for 3 weeks giving everyone who wishes to use a different address an ample opportunity to do so.

Example: Bob had 100 NEWO locked in veNEWO at the time of the snapshot with a 2x multiplier giving Bob 200 veNEWO using address A. Bob’s veNEWO lock was not expired at the time of the snapshot. Bob wants to use address B to convert NEWO to tSYNO and get rCT at address B. Bob uses the address delegation feature to substitute address B for address A in the snapshot. When conversion goes live, Bob transfers his NEWO tokens to address B and converts his 100 NEWO to tSYNO and receives 100 tSYNO and 200 rCT at address B.