🌋 Sky Promises Right to Appeal in Asset Freezing Cases
posted 4 Sept 2024
The new stablecoin USDS, poised to replace DAI, might feature a decentralized process for appealing frozen assets if such measures are implemented in the future. Currently, there is no mechanism for freezing funds, but it could be added through an update to the smart contract.
The concept of freezing assets faced disapproval within the crypto community, as it could remove some of USDS’s major benefits compared to centralized competitors. However, Rune Christensen, the co-founder of Sky, believes that an appeal mechanism could preserve the platform's decentralized nature.
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 explained.
He also noted that the introduction of a freezing feature would require a thorough examination of legal, political, and regulatory factors, as well as the development of a technical solution. The decision to implement such a feature will be made by the project's governance community after considering various factors.
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