Rune Christensen, co-founder of the recently rebranded Maker protocol now known as Sky, clarified that there will be no freeze function in the new USDS stablecoin.
Statement on New Feature
“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.”
Community Reaction
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 named Tunez asked his 155,000 followers whether the function would “completely defeat the purpose of the project.”
Rebranding and New Tokens
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.
The community awaits further updates and evaluation of the new features aimed at protecting the protocol from risks, as well as the next phase of development through rebranding and the introduction of new tokens.
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