MakerDAO’s Rebranding to Sky Impacted This Altcoin’s Gas Token Selection!

Gnosis Chain community, MakerDAO’s its recent rebranding as Sky and its new stablecoin Sky Dollar (USDS) is re-evaluating its gas token selection after its launch.

Gnosis Chain, a sidechain that traditionally uses a bridged version of MakerDAO’s DAI known as xDAI for gas fees, is now facing concerns over the future reliability and decentralization of transaction costs.

MakerDAO, known for its crypto-collateralized stablecoin DAI, has outlined an “endgame” plan that would allow DAI holders to upgrade to USDS at a 1:1 ratio.

The new USDS stablecoin introduces several centralized features, including a “freeze” function that can block wallet addresses and restrict access to users in regions such as the UK and the US. This centralization has raised alarms within the Gnosis Chain community, where decentralization is a core principle.

“USDS has a ‘freeze’ function that allows the stablecoin to be blocked from being used in certain wallets or smart contracts. This change goes against the very essence of Gnosis, which is decentralization and permissionless use,” wrote community member 0xLajota.

In response to these concerns, Gnosis Chain members are exploring alternative options for gas tokens.

Suggestions include adopting decentralized stablecoins like RAI or LUSD, or even creating a basket of currencies to enable a more decentralized and flexible transaction process.

Another proposal being considered is to use Gnosis Chain’s native staking token, Gnosis (GNO), as the gas token. This would bring Gnosis Chain in line with other blockchain protocols that use their native tokens for transaction fees.

The discussion is still in its early stages and no formal proposal has been made, but the Gnosis Chain community clearly prioritizes preserving decentralized ethics when considering the implications of MakerDAO’s transition to Sky.

*This is not investment advice.