Gnosis Chain Community Reconsiders Gas Token Choice in Light of MakerDAO's Sky Rebranding

The Gnosis Chain community is currently reconsidering its choice of gas tokens in light of MakerDAO's recent rebranding to Sky and the introduction

Gnosis Chain, an Ethereum sidechain, currently uses xDAI, a bridged version of MakerDAO’s DAI stablecoin, to cover transaction fees on its network. However, MakerDAO recently introduced new features with its stablecoin USDS that have raised concerns among Gnosis Chain community members.

As part of MakerDAO's new “endgame” strategy, DAI holders can upgrade their tokens to USDS on a 1:1 basis, with the added incentive of native token rewards. While USDS introduces several new features, some of them contradict Gnosis Chain's principles.

For instance, USDS includes the ability to freeze wallet addresses and restrict user access in certain jurisdictions, such as the United Kingdom and the United States. These features have sparked discussions within the Gnosis Chain community, considering the network's emphasis on decentralization.

“The USDS has a ‘freeze’ function that blocks the use of the stablecoin in certain wallets and/or smart contracts,” noted community member 0xLajota. “This change is against the very essence of Gnosis, which is decentralization and permissionless use.”

These concerns have led to discussions about replacing xDAI with an alternative stablecoin that aligns more closely with Gnosis Chain's goals. In response, the community has been exploring various options.

One suggestion is to adopt a decentralized stablecoin, such as RAI, LUSD, or crvUSD, as the network's gas token. Another proposal involves creating a basket of multiple decentralized stablecoins to use as the gas token.

Some community members have also proposed using Gnosis Chain's native staking token, Gnosis (GNO), for transaction fees, consistent with other blockchain networks that use their native tokens as gas.

Interestingly, despite being a decentralized network, the community is also considering more centralized stablecoin options, such as USDT. This proposal has been met with mixed reactions, as it potentially pairs a decentralized blockchain with a centralized stablecoin, creating a paradox.

Other proposals have emerged, including a suggestion to negotiate with MakerDAO for GnosisDAO to take control of DAI governance. While this would maintain a connection with DAI, its feasibility remains uncertain, and the community has not yet reached a consensus on this approach.

As of now, these discussions remain preliminary, and no official proposal has been put forward. The Gnosis Chain community continues to evaluate its options in choosing a gas token that upholds its values of decentralization and permissionless use.