Gnosticism That’s it
-1.75%
die -0.03%
MakerDAO is the issuer of DAI, a stablecoin backed by crypto collateral. As part of MakerDAO’s “endgame” plan, DAI holders will be able to upgrade their tokens to USDS at a 1:1 ratio, as well as the opportunity to earn native token rewards.
The new USDS stablecoin could potentially introduce more centralized features, including the ability to “freeze” wallet addresses and restrict access for UK and US users. These changes have raised concerns among Gnosis Chain users about the reliability of USDS to cover transaction costs.
Community members have highlighted that USDS’ freeze feature contradicts Gnosis’s principles of decentralization. “USDS has a ‘freeze’ feature that can block the use of the stablecoin in certain wallets and/or smart contracts. This change goes against the very nature of Gnosis, which is decentralization and permissionless use,” wrote community member 0xLajota.
In response, Gnosis Chain members have discussed exploring a number of alternative solutions. Proposed options include adopting decentralized stablecoins or currency baskets such as RAI and LUSD.
Alternatively, members have proposed that Gnosis Chain use its own staking token, Gnosis (GNO), as a gas token to align with other blockchain protocols. Discussions are preliminary, and no formal proposal has been made so far.
Disclaimer: The Block is an independent media outlet providing news, research and data. As of November 2023, Foresight Ventures is the largest investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, influential and timely information on the cryptocurrency industry. Current financial disclosures are as follows:
© 2024 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.