- As part of MakerDAO’s drive for widespread adoption, users will be able to exchange their current tokens for their new NewStable and NewGovToken versions.
NewStable (NST) and NewGovToken (NGT), respectively, are the improved versions of MakerDAO’s DAI stablecoin and the MKR governance token.
The release from August 22 states that switching to the new tokens is optional and won’t render DAI and MKR obsolete; both will remain accessible unless the protocol’s administration determines differently.
Users will still be able to convert their holdings back to DAI at any moment and can exchange DAI for the new NST token 1:1. Maker further clarified that NST is intended for widespread adoption, whereas DAI would concentrate on use cases that are crypto-native.
In the meanwhile, there will be a 1:24,000 ratio change between MKR and NGT, meaning that one MKR token will be worth 24,000 NGT. The goal of the weight difference is to encourage greater participation in government.
Encourage widespread adoption
On May 15, co-founder of MakerDAO Rune Christensen originally suggested the idea of a new DAI stablecoin.
Christensen clarified in a blog post that DAI is operating in two distinct worlds: one is defined by a culture that values complete decentralization, and the other aims to achieve the company’s initial goal of providing large-scale utility and value to actual people.
NewStable plans to concentrate on widespread market acceptance and regulatory-compliant Real-World Asset (RWA) backing in order to address this problem.
NewStable will include an update mechanism to add a freeze feature, which will abide by the law in areas where Maker requires a high degree of legal certainty, in order to accomplish its goal of regulatory compliance.
Nevertheless, this function won’t be available at NST’s launch and its deployment will be determined by the project’s governance.
DAI will lose its yield offering even though it will still be alive after NST is implemented since NewStable will be the only stablecoin in MakerDAO’s ecosystem that may accrue value.
Final Round
As part of MakerDAO’s “Endgame,” the NST and NGT tokens will have new designations as soon as the system implements its rebranding.
As to the literature provided by Maker, the Endgame plan is a comprehensive proposal that aims to improve the tokenomics and governance of the MakerDAO ecosystem. The ultimate goal is to bring the ecosystem to a stable and resilient state where it can sustain itself with minimal modifications to its fundamental components.
The establishment of sub-decentralized autonomous organizations to address particular issues, large emphasis areas, and groupings of allied voters focusing on high-level governance decisions are among the plan’s essential elements, in addition to the modifications in tokenomics.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
