MakerDAO unveils revamped stablecoin and governance tokens

MakerDAO introduced caller upgraded versions of its DAI stablecoin and the MKR governance token, called NewStable (NST) and NewGovToken (NGT), respectively.

According to the Aug. 22 announcement, upgrading to the caller tokens is optional, and they volition not marque DAI and MKR obsolete — some volition proceed to beryllium disposable arsenic earlier unless the protocol’s governance decides otherwise.

Users volition beryllium capable to swap DAI for the caller NST token 1:1 and volition support the quality to revert their holdings to DAI anytime. Additionally, Maker explained that DAI volition absorption connected crypto-native usage cases, portion NST is targeted astatine wide adoption.

Meanwhile, the swap betwixt MKR and NGT volition hap astatine a ratio of 1:24,000, which means that 1 MKR token volition beryllium equivalent to 24,000 NGT. The value disparity is intended to beforehand broader engagement successful governance. The announcement added:

“It allows much users to clasp a important fig of NewGovToken and actively power the aboriginal of the ecosystem.”

The announcement did not disclose dates for the upgrade.

Push for wide adoption

MakerDAO co-founder Rune Christensen archetypal projected the conception of a caller mentation of the DAI stablecoin connected May 15. 

In a blog post, Christensen explained that DAI is “straddling 2 worlds”— 1 marked by the civilization of axenic decentralization and the different aimed astatine fulfilling its archetypal purpose, which is delivering inferior and worth to existent radical astatine scale.

He added that the 2 worlds are incompatible with each other. According to Christensen:

“Unfortunately these 2 worlds are fundamentally successful friction with each other, arsenic noted by the Stablecoin Trilemma, which states that achieving a dollar peg, maintaining axenic decentralization, and scaling to ample sizes simultaneously is not feasible.”

To flooded this issue, NewStable intends to absorption connected wide marketplace adoption and connected regulatorily-compliant Real-World Asset (RWA) backing. 

To fulfill its intent of regulatory compliance, NewStable volition person an upgrade mechanics to present a frost function, which volition travel the rules of instrumentality successful jurisdictions wherever Maker needs a precocious level of regulatory certainty.

However, the implementation of this relation volition beryllium decided by the project’s governance and won’t beryllium disposable astatine NST’s launch.

Despite remaining progressive aft NST’s implementation, DAI volition commencement losing its output offering, arsenic NewStable volition beryllium the lone stablecoin successful MakerDAO’s ecosystem with value-accruing capabilities.

Endgame

The NST and NGT tokens are portion of MakerDAO’s “Endgame,” and these labels volition beryllium replaced arsenic soon arsenic the protocol executes its rebranding.

According to Maker’s documentation, the Endgame program is simply a broad connection aimed astatine enhancing the governance and tokenomics of the MakerDAO ecosystem, starring it to a unchangeable and resilient authorities wherever the ecosystem is self-sustainable, with minimal changes to its halfway components.

Along with the tokenomics changes, the plan’s halfway components besides see the instauration of sub-decentralized autonomous organizations to grip circumstantial matters, wide absorption areas, and groups of aligned voters focused connected high-level governance decisions.

The station MakerDAO unveils revamped stablecoin and governance tokens appeared archetypal connected CryptoSlate.