USDS raises concerns about centralization, Gnosis Chain community members discuss alternatives to Gas tokens

ChainCatcher news, according to The Block, Gnosis Chain community members are reconsidering their choice of Gas token after MakerDAO rebranded to Sky and launched a new stablecoin, Sky Dollar (USDS). Gnosis operates a sidechain that currently uses a bridged version called xDAI to pay for Gas fees on the network.

MakerDAO is the issuer of DAI, a stablecoin backed by collateralized crypto assets. The new USDS stablecoin may introduce more centralized features, including the ability to "freeze" wallet addresses and restrict access for users in the UK and the US. These changes have raised concerns among Gnosis Chain users about the reliability of USDS in covering transaction costs.

Community members emphasized that the freezing feature of USDS contradicts Gnosis's principles of decentralization. Gnosis Chain members discussed exploring several alternative solutions, with proposed options including adopting decentralized stablecoins like RAI and LUSD or a basket of currencies. Additionally, members suggested that Gnosis Chain could use its native staking token Gnosis (GNO) as a Gas token, aligning with practices of other blockchain protocols. This discussion is still in the preliminary stages, and no formal proposals have been put forward yet.