Frax Finance Team Proposes Abandoning PoW ETH Forks

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The team of developers of the Frax Finance platform has proposed to the community that the algorithmic stablecoin FRAX should not be launched in potential Proof-of-Work (PoW) forks of the Ethereum blockchain.

The FIP-101 proposal was sponsored by project co-founder Sam Kazemian. The initiative involves the redemption of FRAX exclusively on the Ethereum 2.0 network based on the Proof-of-Stake (PoS) algorithm.

He has said:

“FRAX is the fifth largest stablecoin in the market, accounting for over 20% of the TVL of the Curve platform, it is a Uniswap top 10 token, and a critical part of the Ethereum ecosystem. As such, it makes sense to clearly and publicly communicate the desire of FXS holders through a governance mechanism.”

If the offer is accepted, FRAX DAO will convert all assets of the potential PoW network (subject to their significant value) into the PoW version of ETH. Funds will be contributed to the project treasury to meet the requirements for the redemption of stablecoins.