Sonic Labs canceled plans to launch the algorithm from the US dollar algorithm, and instead chose to develop an alternative from the United Arab Emirates.
On March 22, Sonic Labs Participant founder Andre Kronji said The company was working on American dollar reserved algorithms with an annual percentage (APR) of 23 %.
However, after one week, the company reflected the path.
“We will no longer launch a stable algorithm based on the US dollar,” Kronji said in a post on March 28 x. “It has nothing to do with it, we will issue a numerical dirham linked to mathematics, which has been settled and benefited from the US dollar, and it is certainly not a stable algorithm based on the dollar.”
The shift in the strategy comes shortly after The United Arab Emirates announced that it will launch Dival Dirham Center Bank (CBDC) in the fourth quarter of 2025.
source: André Kronji
Khaled Mohamed Balma, ruler of the Central Bank of the United Arab Emirates, said that Deirham is based in Blwchin can enhance financial stability and assistance in combating financial crime. The digital currency will be accepted alongside its material counterpart in all payment channels, According to To a report from the Times Bay.
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Sonic faced criticism on Stablecoin’s plans
The reflection follows a widespread criticism of Sonic’s original plan to launch Stablecoin algorithm – a form that has sparked concerns through the encryption industry since the collapse of the Terra Ecosystem system in 2022.
Kronji himself previously I confess To experience PTSD related to Stablecoin algorithm due to previous sessions:
“Certainly, our team broke the stable coins today, but the previous session gave me a lot of post -traumatic disorder is not sure whether we should implement it.”
In May 2022, 40 billion dollars Terra The ecosystem collapsed, erasing tens of billions of dollars of value within days. The algorithm was in Terra, Terrausd (UST), resulting in an annual percentage of more than 20 % (APY) on the anchor protocol before its collapse.
When the UST lost the dollar’s connection, it decreased to the lowest level in about $ 0.30, Co -founder of TerraForm Labs Do Kwon Take to X (then Twitter) to share its own rescue plan. Meanwhile, the value of the sisterly code – once the best 10 encryption projects by market value – decreased more than 98 % to $ 0.84. Luna was trading in a value of $ 120 in early April 2022.
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The collapse of Stablecoin Source has created shock waves between both encryption investors and legislators.
To reduce the regular risks, the European Union You will prohibit the draft law regulating coded (MICA) Stablecoins algorithm to avoid another Terra -like failure.
Meanwhile, Stablecoins is increasingly used for smaller daily payments instead of large transfers, according to Coinfund David Pakman.
“We have seen a significant decrease in the size of all Stablecoin, indicating the fact that it is used more as payments and less for large transfers,” said Pakman. Chain of interaction Direct offer on X on March 27.
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magazine: Ripple says “End”, Trump in DAS, and more: Hodler’s Digest, from 16 to 22 March
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