Maker Co-Founder Rune Christensen Dispels “Freeze Perform” Rumors Forward Of USDS Launch

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Rune Christensen, co-founder of the not too long ago rebranded Maker protocol, has clarified that there will probably be no “freeze perform” added to the challenge’s new USDS stablecoin.

“Really there will probably be no freeze perform at launch, there’ll simply be an improve means,” Christensen stated in an Aug. 27 X submit. With this improve means, members of the challenge’s governance will be capable of determine later how new capabilities will probably be carried out to guard towards “as many threat components as doable.”

Crypto X Group Raises Centralization Considerations

Christensen’s X submit comes after the protocol confronted backlash for a supposed “freeze perform” in its new stablecoin. Some on-line observers additionally began to query the decentralization of the protocol. One X consumer that goes by the identify “Tunez” requested his 155,000 followers whether or not the perform would “utterly defeat the aim of the challenge.”

maker is rebranding to sky
extra importantly, $DAI is rebranding to $USDS and introducing a freeze perform
would not this utterly defeat the aim of the challenge? am i lacking one thing right here
— tunez (evm/acc) 🎮 (@cryptunez) August 27, 2024

Cinneamhain Ventures companion Adam Cochran stated {that a} freeze perform could be obligatory if the brand new stablecoin is to be backed by US treasuries. “You’re both decentralized and by yourself, otherwise you undertake the treasury departments stick, to get their carrot,” he stated.

Maker Rebrands To Sky, Will Launch Two New Tokens In September

Talks of a freeze perform come amid Maker’s rebranding to “Sky” this week. Boasting $7 billion price of belongings, the protocol will introduce new variations of each its $5 billion DAI stablecoin and its MKR governance token as a part of the rebrand.

A brand new USDS stablecoin and a SKY governance token will probably be added to the upgraded ecosystem, whereas their predecessors will proceed to commerce on the open market. DAI holders will be capable of alternate their tokens 1:1 for USDS. In the meantime, every MKR token could be swapped for 28,000 SKY tokens.

Present DAI and MKR holders will even be capable of voluntarily select to maintain the outdated tokens or swap them out for the brand new USDS and SKY tokens, which will probably be launched on Sept. 15.