MakerDAO is the stablecoin DAI issuer with crypto collateral backing. MakerDAO’s “endgame” strategy will let DAI holders choose to instead convert their tokens to USDS on a 1:1 ratio, therefore providing native token incentives as well.

With the capacity to “freeze” wallet addresses and restrict access for users in the US and the UK, the new USDS stablecoin might bring more centralized characteristics. Users of Gnosis Chain have expressed worries regarding USDS’s dependability in terms of financing transaction expenses these changes bring about. MakerDAO has already made clear that DAI, as it exists right now, will always be present.

Community users pointed out that the freeze feature of USDS runs counter to Gnosis’s decentralizing ideas. “The USDS has a ‘freeze’ function that blocks the use of the stablecoin in certain wallets and/or smart contracts. This change is against the very essence of Gnosis, which is decentralization and permissionless use,” community member 0xLajota said.

Members of Gnosis Chain responded by talking about investigating numerous other options. Recommended choices are using a basket of currencies or distributed stablecoins like RAI and LUSD.

Alternatively, in line with other blockchain systems, users recommended Gnosis Chain can utilize Gnosis (GNO), its natural staking coin, as the gas token. The conversation is exploratory; thus yet, no official proposal has been suggested.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Gnosis Chain Rethinks Gas Token After USDS Launch appeared first on Coin Engineer.