Just a day after MakerDAO rebranded to Sky, the community has been debating the implications of the new freeze function. MakerDAO co-founder Rune Christensen steps in to provide clarity.
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 free function. X user Laurence tweeted that “New DAI has a freeze function; Olympus has fallen.” Phoenix Labs and Spark Protocol CEO Sam MacPherson also confirmed that USDS will have a freezing function.
MakerDAO co-founder clarifies the freeze function
As the crypto community has been sharing the news that they are adding a freeze function to DAI, Christensen decided to step in and clear the air. He tweeted that the claims are misleading and that DAI will continue to function just as before. Christensen also added that DAI can still be used like before.
MakerDAO co-founder also clarified that upgrading to USDS is optional and not mandatory. He also highlighted that only USDS will have a freeze function. Christensen clarified that DAI is an immutable smart contract and can’t be altered.
No USDS stablecoin freeze function at launch
Another X user posed a question as to whether this freeze function will be a slow DAO vote only or delegated to a committee. As a response, Christensen stated that there will be no freeze function at launch. He also added that there will just be an upgrade ability.
“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 said.
Holders of DAI and MKR tokens will be able to upgrade their tokens starting from September 18. However, holders can also opt to sign up for early bird perks.
Other prominent stablecoins like Tether (USDT) also have the freeze functionality. This allows the team to block USDT linked to illicit activities, as the company had previously done in the past.
According to CoinGecko data, DAI is the third largest stablecoin, just behind USDT and USDC. DAI also has a market cap of $5.3 billion.
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