According to the Snapshot page, the proposal of the Frax Finance community of the stablecoin protocol to "set the protocol target collateral rate (CR) to 100%" was voted through with 98.08% support. The proposal plans to remove the algorithmic support for stablecoins from the protocol, after which FRAX will become a fully collateralized stablecoin. Frax previously used a hybrid design to keep its price pegged to the US dollar, 80% supported by crypto asset collateral, and partially stabilized by algorithms.

According to the proposal, a 100% target collateralization ratio is a long-term goal for the protocol that will take time to achieve, but no FXS will be minted to achieve this goal. As part of this change, the protocol is retiring FRAX's algorithmic support and decollateralization capabilities. Protocol revenue is retained to fund the increased CR, including the suspension of FXS buybacks. veFXS yields remain unchanged. Protocol auditors are authorized to purchase up to $3 million of frxETH per month to increase the target collateralization ratio.