- It will be called Fraxchain
- The network will aim to create a smart contract platform
- Blockchain should be ready by the end of 2023
DeFi-Protocol Frax Finance announced the development of a second-tier blockchain. The team in charge of developing Fraxchain has already revealed its strategy for a second-tier blockchain.
The developers said that the network will focus on creating a platform for smart contracts with a greater emphasis on decentralized finance. Frax founder, Sam Kazemian, said Fraxchain is the epitome of the entire ecosystem and all this desirable usability and popularity we’ve gotten.
The network is expected to be ready by the end of this year. As for Fraxchain management, it will be done by Frax Shares (FXS) token holders. Frax and Frax Ether Stablecoins will be used for transactions on the network. Kazemian said that commissions from the folded network could in part be burned or returned to the Ethereum network for further distribution to FXS owners.
Blockchain would include decentralized sequencers (nodes responsible for ordering transactions on the network). They will be managed by an organization that will be chosen by ballot. This feature, will differentiate Fraxchain from other second-tier solutions on Ethereum, which typically rely on a single sequencer.
In early February, DeFi-protocol Frax Finance moved to fully provision its native Frax stackablecoin (FRAX). That is, they have abandoned the algorithmic mechanism. This was decided by the community in a vote. “98% of the participants were in favor.