Frax Finance, makers of one of the decentralized stablecoins and DeFi-focused stablecoin infrastructure, has announced plans to introduce an Ethereum layer 2 blockchain dubbed Fraxchain.
After the decision, the price of FXS, the token of the Frax ecosystem, increased.
The team said the network will be geared towards building a smart contract platform with a strong emphasis on decentralized finance. Sam Kazemian, founder of Frax, said:
“Fraxchain actually represents the pinnacle of the entire Frax ecosystem and all the attention and use we've gotten.”
The network is expected to be ready by the end of the year. The management of the new layer 2 protocol will be handled by FXS token holders. Kazemian also added that the fees generated by the roll-up network could be partially burned or redirected back to the Ethereum mainnet for distribution among FXS management token holders.
Fraxchain proposes a solution that will create a decentralized sequencer base where sequencer roles can be auctioned and rotated. If a sequencer has to shut down, Fraxchain will allow the next selected sequencer to continue where the previous one left off.
*Not investment advice.
