MakerDAO, the company behind the popular stablecoin DAI, is making some big changes. They’re rebranding their stablecoin to USDS (Sky Dollar) and it’s going to have a new feature: a freeze function.
What’s a Freeze Function?
A freeze function basically allows the company to stop the movement of tokens. This could be useful in certain situations, like if there’s a security breach or some other problem.
Don’t Worry, DAI Is Still Here
MakerDAO’s co-founder, Rune Christensen, has assured everyone that DAI will continue to work just like it always has. You can still use it, and it won’t have a freeze function.
Upgrading to USDS Is Optional
If you want to switch from DAI to USDS, you can do that at a 1:1 ratio. But it’s completely optional. The freeze function will only apply to USDS.
The Freeze Function Won’t Be Immediate
Christensen says that the freeze function won’t be added to USDS right away. They’ll need to figure out the best way to implement it and get approval from the MakerDAO community.
MakerDAO’s MKR Token Also Gets a Rebrand
MakerDAO’s MKR token is also getting a rebrand. It will be upgraded to SKY, with a 1:24,000 ratio.
The Bottom Line
MakerDAO is making some changes, but DAI will continue to operate as normal. If you want to switch to USDS, you can, but it’s not required. The freeze function is a new feature that will be added to USDS in the future.
