According to the co-founder of Maker, now Sky’s new crypto stablecoin, the status of the freeze function may include a decentralized court-like appeals procedure.
In an interview with Cointelegraph during Korea Blockchain Week, Rune Christensen, the co-founder of Sky (formerly Maker), stated that developing a suspend function significantly more decentralized than centralized stablecoins is feasible.
Last month, DeFi commentators issued a severe online critique of the protocol’s stablecoin USDS, a rebranding of its Dai stablecoin, due to a feature that permits the freezing of tokens.
Last month, Christensen clarified that USDS will not include a freeze function at launch. However, the feature can be enhanced if a governance body is involved.
He informed Cointelegraph that users with USDS suspended could “access the power of decentralized governance to guarantee that processes such as due process are conducted transparently” if it were to go live.
“One of the things I imagine that could be interesting is something like an appeals process that actually gives everyone the right to go through decentralized governance and get a transparent reason for why they’re not allowed to have their freeze removed.”
Christensen believed that the Sky protocol could “make objective calls on objective decisions” by adhering to the stipulated regulations for the system.
He stated that it is “impossible to predict” the availability of the USDS freeze function; however, it necessitates “a meticulous legal, political, and regulatory analysis, as well as an extensive design process conducted by decentralized Sky governance.”
Skylink will enable USDS transfers between blockchains
In the future, USDS and the Sky protocol will function on numerous blockchains via a protocol known as Skylink, which Christensen describes as designed to “meet the user where they are.”
“Almost the entire suite of native features is available natively on the destination chain wherever Skylink is deployed,” he stated.
In addition to the Sky protocol and its features, this encompasses a native version of USDS and its capabilities, as opposed to the “ad hoc individual solutions” employed in DAI.
Christensen stated that Skylink could be deployed on “various blockchains,” such as layer 1 and 2 networks.
He stated, “Multi-chain is indispensable if you wish to capitalize on the marginal users who are utilizing the chain of their choice.” “The sole method of accessing valuable users is to expand.”
According to Christensen, the crypto industry has been historically characterized by a “‘build it and they will come’ mentality,” which no longer represents the current state of the world.
“In crypto now you have to really fight for the user. So you have to do everything you can as a protocol to make it painless and approachable.”
Christensen stated that Skylink’s debut will occur “a couple of months” after Sky’s launch on Sept. 18.
