The co-founder of decentralized finance (DeFi) platform Maker (MKR) says the rebranding of his stablecoin will have a freezing function but DAI will continue to function normally.
In a new thread on social media platform X, MakerDAO creator Rune Christensen says that DAI itself will not feature a freeze feature — or a mechanism that stops the movement of tokens — after rumors circulated that it would.
According to Christensen, adding a freeze feature to the rebranded stablecoin won’t be immediate and will need to be something worked out and approved by the protocol’s DAO (decentralized autonomous organization).
“There will be no freeze feature at launch, there will just be an upgrade capability. So later governance can decide how to implement something like a freeze feature taking into account all the data and come up with something that protects against as many risk factors as possible.”
Christensen goes on to note that the upgrade from DAI to Sky Dollar (USDS) will be optional.
“DAI will continue to function as before and can still be used. Upgrading to USDS is optional, and only USDS will have a freeze function. DAI is an immutable smart contract and cannot be changed.”
Earlier this week, MakerDAO announced that it was rebranding to Sky (SKY) and would allow investors to exchange their DAI at a 1:1 ratio for USDS while the MKR token can be upgraded up to 24,000 SKY.
MKR is trading at $1,815 at the time of writing, down 16% in the last 24 hours.
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Featured image: Shutterstock/arleksey/Nikelser Kate
