The core development team of the Frax Finance platform suggested to the community that the FRAX algorithmic stablecoin should not be launched on potential Proof-of-Work (PoW) forks of the Ethereum network.

First big stand against ETHPOW@fraxfinancecore development team.

[FIP — 101] Make FRAX stablecoins available on PoS ETH only – Governance Recommendations / FIPs – Frax Finance Governance https://t.co/TgjGR5yDxz

— Zaheer (@SplitCapital) August 4, 2022

The FIP-101 proposal was supported by the project’s co-founder, Sam Kazemian. The initiative includes redemption of FRAX only on the Ethereum 2.0 network based on the Proof-of-Stake (PoS) algorithm.

“FRAX is the fifth largest stablecoin in the market, with a share of over 20%. TVL The Curve platform is one of the top 10 Uniswap tokens and a critical part of the Ethereum ecosystem. Therefore, it makes sense to communicate the wishes of FXS holders openly and publicly through a governance mechanism,” Kazemian wrote.

If the proposal is accepted, the FRAX DAO will convert all assets of the potential PoW network (subject to their significant value) to the PoW version of ETH. Funding will be provided to the project treasury to meet the requirements for the repurchase of stablecoins.

The merger of the Ethereum mainnet with the Beacon Chain is scheduled for September 2022, but the timing of the upgrade may vary depending on the cumulative difficulty indicator.

Recall that the Poloniex cryptocurrency exchange announced support for potential PoW-based Ethereum forks.

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