MakerDAO introduced new upgraded variations of its DAI stablecoin and the MKR governance token, known as NewStable (NST) and NewGovToken (NGT), respectively.
In response to the Aug. 22 announcement, upgrading to the brand new tokens is non-obligatory, and they won’t make DAI and MKR out of date — each will proceed to be accessible as earlier than until the protocol’s governance decides in any other case.
Customers will be capable to swap DAI for the brand new NST token 1:1 and will keep the power to revert their holdings to DAI anytime. Moreover, Maker defined that DAI will deal with crypto-native use instances, whereas NST is focused at mass adoption.
In the meantime, the swap between MKR and NGT will occur at a ratio of 1:24,000, which implies that one MKR token shall be equal to 24,000 NGT. The load disparity is meant to advertise broader engagement in governance. The announcement added:
“It allows more users to hold a significant number of NewGovToken and actively influence the future of the ecosystem.”
The announcement didn’t disclose dates for the improve.
Push for mass adoption
MakerDAO co-founder Rune Christensen first proposed the idea of a brand new model of the DAI stablecoin on Could 15.
In a blog post, Christensen defined that DAI is “straddling two worlds”— one marked by the tradition of pure decentralization and the opposite geared toward fulfilling its unique function, which is delivering utility and worth to actual folks at scale.
He added that the 2 worlds are incompatible with one another. In response to Christensen:
“Unfortunately these two worlds are fundamentally in friction with each other, as noted by the Stablecoin Trilemma, which states that achieving a dollar peg, maintaining pure decentralization, and scaling to large sizes simultaneously is not feasible.”
To beat this problem, NewStable intends to deal with mass market adoption and on regulatorily-compliant Actual-World Asset (RWA) backing.
To meet its function of regulatory compliance, NewStable can have an improve mechanism to introduce a freeze operate, which is able to comply with the principles of regulation in jurisdictions the place Maker wants a excessive stage of regulatory certainty.
Nonetheless, the implementation of this operate shall be determined by the undertaking’s governance and received’t be accessible at NST’s launch.
Regardless of remaining lively after NST’s implementation, DAI will begin shedding its yield providing, as NewStable would be the solely stablecoin in MakerDAO’s ecosystem with value-accruing capabilities.
Endgame
The NST and NGT tokens are a part of MakerDAO’s “Endgame,” and these labels shall be changed as quickly because the protocol executes its rebranding.
In response to Maker’s documentation, the Endgame plan is a complete proposal geared toward enhancing the governance and tokenomics of the MakerDAO ecosystem, main it to a steady and resilient state the place the ecosystem is self-sustainable, with minimal modifications to its core parts.
Together with the tokenomics modifications, the plan’s core parts additionally embody the introduction of sub-decentralized autonomous organizations to deal with particular issues, broad focus areas, and teams of aligned voters centered on high-level governance selections.
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