Maker Co-Founder Rune Christensen Dispels “Freeze Function” Rumors Ahead Of USDS Launch

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Rune Christensen, co-founder of the just lately rebranded Maker protocol, has clarified that there will likely be no “freeze operate” added to the undertaking’s new USDS stablecoin.

“Really there will likely be no freeze operate at launch, there’ll simply be an improve capacity,” Christensen mentioned in an Aug. 27 X publish. With this improve capacity, members of the undertaking’s governance will be capable to determine later how new capabilities will likely be carried out to guard towards “as many danger elements as attainable.”

Crypto X Neighborhood Raises Centralization Considerations

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

maker is rebranding to sky

extra importantly, $DAI is rebranding to $USDS and introducing a freeze operate

would not this utterly defeat the aim of the undertaking? am i lacking one thing right here

— tunez (evm/acc) 🎮 (@cryptunez) August 27, 2024

Cinneamhain Ventures companion Adam Cochran mentioned {that a} freeze operate could be vital 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 mentioned.

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

Talks of a freeze operate 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 likely be added to the upgraded ecosystem, whereas their predecessors will proceed to commerce on the open market. DAI holders will be capable to trade their tokens 1:1 for USDS. In the meantime, every MKR token may be swapped for 28,000 SKY tokens.

Present DAI and MKR holders may also be capable to voluntarily select to maintain the outdated tokens or swap them out for the brand new USDS and SKY tokens, which will likely be launched on Sept. 15.