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Rune Christensen, co-founder of the recently rebranded Maker protocol, has clarified that there will be no “freeze function” added to the project’s new USDS stablecoin.
“Actually there will be no freeze function at launch, there will just be an upgrade ability,” Christensen said in an Aug. 27 X post. With this upgrade ability, members of the project’s governance will be able to decide later how new functions will be implemented to protect against “as many risk factors as possible.”
Crypto X Community Raises Centralization Concerns
Christensen’s X post comes after the protocol faced backlash for a supposed “freeze function” in its new stablecoin. Some online observers also started to question the decentralization of the protocol. One X user that goes by the name “Tunez” asked his 155,000 followers whether the function would “completely defeat the purpose of the project.”
maker is rebranding to sky
more importantly, $DAI is rebranding to $USDS and introducing a freeze function
doesn’t this completely defeat the purpose of the project? am i missing something here
— tunez (evm/acc) 🎮 (@cryptunez) August 27, 2024
Cinneamhain Ventures partner Adam Cochran said that a freeze function would be necessary if the new stablecoin is to be backed by US treasuries. “You’re either decentralized and on your own, or you adopt the treasury departments stick, to get their carrot,” he said.
Maker Rebrands To Sky, Will Launch Two New Tokens In September
Talks of a freeze function come amid Maker’s rebranding to “Sky” this week. Boasting $7 billion worth of assets, the protocol will introduce new versions of both its $5 billion DAI stablecoin and its MKR governance token as part of the rebrand.
A new USDS stablecoin and a SKY governance token will be added to the upgraded ecosystem, while their predecessors will continue to trade on the open market. DAI holders will be able to exchange their tokens 1:1 for USDS. Meanwhile, each MKR token can be swapped for 28,000 SKY tokens.
Current DAI and MKR holders will also be able to voluntarily choose to keep the old tokens or swap them out for the new USDS and SKY tokens, which will be launched on Sept. 15.
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