The co-founder of decentralized finance (DeFi) platform Maker (MKR) says that the rebrand of its stablecoin will have a freeze function but that DAI will continue to operate normally.
In a new thread on the social media platform X, MakerDAO creator Rune Christensen says that DAI itself will not feature a freeze function – or a mechanism that stops the movement of tokens – after rumors swirled that it would.
According to Christensen, the addition of a freeze function to the rebranded stablecoin will not be immediate and will have to be something hashed out and approved by the protocol’s DAO (decentralized autonomous organization).
“There will be no freeze function at launch, there will just be an upgradeability. So later governance can decide how to implement something like a freeze function based on considering all data and find something that protects against as many risk factors as possible.”
Christensen goes on to note that upgrading from DAI to the Sky Dollar (USDS) will be optional.
“DAI will continue to function just as before, and can still be used. Upgrading to USDS is optional, and it is only USDS that will have a freeze function. DAI is an immutable smart contract and cannot be altered.”
Earlier this week, MakerDAO announced it was rebranding to the Sky (SKY) and will allow investors to trade in their DAI at a 1:1 ratio for USDS while the MKR token can be upgraded to 24,000 SKY.
MKR is trading for $1,815 at time of writing, a 16% decrease during the last 24 hours.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Featured Image: Shutterstock/arleksey/Nikelser Kate
Read the full article here
