The co-founder of decentralized finance (DeFi) platform Maker (MKR) has revealed that the stablecoin’s rebrand will include a freeze feature, but DAI will operate as normal.
In a new thread on social media platform X, MakerDAO creator Rune Christensen revealed that DAI itself will not have a freeze function (a mechanism to stop token movement), as rumors had it that there would be one.
According to Christensen, adding a freeze feature to the rebranded stablecoin won’t happen immediately and will need to be discussed and approved in detail by the protocol’s Decentralized Autonomous Organization (DAO).
“At launch, there will be no freeze functionality, only upgrade functionality. So later on, governance can consider all the data and decide how to implement something like a freeze functionality and find ways to protect against as many risks as possible.”
Christensen noted that upgrading from DAI to Sky Dollar (USDS) is optional.
“DAI will continue to function as before and can still be used. Upgrading to USDS is optional and only USDS has the freeze feature. DAI is an immutable smart contract and cannot be changed.”
Earlier this week, MakerDAO announced that it was rebranding to Sky (SKY) and allowing investors to trade DAI with USDS at a 1:1 ratio and upgrade MKR tokens to 24,000 SKY.
At the time of writing, MKR is trading at $1,815, down 16% over the last 24 hours.
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Featured image: Shutterstock/arleksey/Nikelser Kate