MakerDAO upgrade stirs controversy following centralization allegation

Cryptos | 08/28/2024 01:07:41 GMT

• MakerDAO announced that it has rebranded to Sky and will upgrade its stablecoin DAI to USDS.#DAOMaker

• The new upgrade allegedly includes a freezing function and a feature prohibiting the use of VPN.

• Crypto community members have shown displeasure, alleging that the governance protocol is becoming a centralized system.

• A potential scammer has taken over the old MakerDAO username on the X platform.

MakerDAO (MKR), the governance protocol behind the DeFi stablecoin DAI, announced on Tuesday that it has rebranded to Sky, introducing new upgrades to its governance token and stablecoin. Following the announcement, the governance team has been subject to criticism from several crypto community members

Crypto community expresses concerns that DAI could become centralized. #dailyearnings

Decentralized protocol MakerDAO was the subject of criticism on Tuesday following the announcement of its brand name change to Sky

The announcement came earlier in the day after the team released an official statement for the rebranding. They also mentioned the launch of a new governance token, SKY, along with an upgrade of its stablecoin from DAI to USDS

The rebranding is part of MakerDAO's endgame plan, which introduces USDS and SKY as replacements for DAI and MKR. Users can decide to upgrade from DAI to USDS on a 1:1 basis, and MKR to SKY upgrade on a 1:24,000 exchange. However, both tokens will remain available and unchanged until otherwise stated by the governance

The change from MakerDAO to Sky has come with criticism from the crypto community.Several members have expressed displeasure with this new model, alleging that MakerDAO may be veering toward centralization and censorship. The new model allegedly includes a VPN blocker that prevents users from certain parts of the globe from accessing the website and a new freezing function on its stablecoin. A freezing function is popular among centralized stablecoins like USDT and USDC.