1. MakerDAO Co-Founder Clarifies the Freeze Function
2. No USDS Stablecoin Freeze Function at Launch
3. Comparison with Other Stablecoins

Just a day after MakerDAO rebranded to Sky, the community has been debating the implications of the new freeze function on DAI tokens. MakerDAO co-founder Rune Christensen steps in to provide clarity.

MakerDAO Co-Founder Clarifies the Freeze Function

Following its transition to Sky yesterday, MakerDAO announced that its token DAI stablecoin will be rebranded to USDS and the MKR token will become SKY. However, the rebranding was met with some debate from the crypto community for its freeze function. X user Laurence [tweeted](https://x.com/functi0nZer0/status/1828432650152935605) that the new DAI has a freeze function. Phoenix Labs and Spark Protocol CEO Sam MacPherson also confirmed that USDS will have a freezing function. MakerDAO co-founder Rune Christensen decided to step in and clarify that the claims about the freeze function are misleading and that DAI will continue to function just as before. Christensen also highlighted that upgrading to USDS is optional and not mandatory.

No USDS Stablecoin Freeze Function at Launch

Another X user asked whether this freeze function would be a slow DAO vote only or delegated to a committee. In response, Christensen stated that there would be no freeze function at launch, only an upgrade ability. He added that later governance could decide how to implement a freeze function based on considering all data and risk factors.

Comparison with Other Stablecoins

Other prominent stablecoins, like Tether (USDT), also have a freeze functionality, allowing the team to block USDT linked to illicit activities. According to CoinGecko data, DAI is the third largest stablecoin, just behind USDT and USDC, with a market cap of $5.3 billion.

The MakerDAO community actively discusses the new freeze function on DAI tokens after the rebranding. MakerDAO co-founder Rune Christensen clarifies that DAI will remain unchanged, the transition to USDS is optional, and the freeze function will be discussed in the future.