Manufacturer DAO Introduced These are new, upgraded versions of the DAI stablecoin and MKR governance token, called NewStable (NST) and NewGovToken (NGT) respectively.
According to the Aug. 22 announcement, upgrading to the new tokens is optional, and neither DAI nor MKR will be phased out. Both will remain available as before unless the protocol governance decides otherwise.
Users can exchange DAI for the new NST token 1:1 and convert their holdings back into DAI at any time. Additionally, Maker explained that DAI is focused on crypto-native use cases, while NST targets mass adoption.
Meanwhile, MKR and NGT swaps will take place at a ratio of 1:24,000, meaning 1 MKR token is worth 24,000 NGT. This weighting imbalance is intended to encourage broader participation in governance. The announcement adds:
“This will allow many more users to hold large amounts of NewGovToken and actively influence the future of the ecosystem.”
The announcement did not give a timeline for the upgrade.
Promoting mass adoption
MakerDAO co-founder Rune Christensen first proposed the concept for a new version of the DAI stablecoin on May 15.
in Blog PostChristensen explained that DAI “straddles two worlds”: one characterized by a culture of pure decentralization, and the other aiming to achieve its original purpose of providing utility and value to real people at scale.
Christensen added that the two worlds are mutually exclusive.
“Unfortunately, these two worlds are in fundamental conflict, and as the stablecoin trilemma points out, it is not feasible to simultaneously achieve a dollar peg, maintain genuine decentralization, and scale.”
To overcome this issue, NewStable will focus on mass market adoption and regulatory compliant real-world assets (RWA) backing.
To meet regulatory compliance objectives, NewStable will have an upgrade mechanism to introduce freezing capabilities that will allow Makers to comply with the laws of jurisdictions that require a high degree of regulatory certainty.
However, the implementation of this feature is determined by project governance and will not be available at NST launch.
Despite remaining active after the implementation of the NST, DAI will begin to lose its yield offering as NewStable will be the only stablecoin with value storage functionality within the MakerDAO ecosystem.
Endgame
The NST and NGT tokens are part of MakerDAO’s “Endgame,” and these labels will be replaced as soon as the protocol executes its rebranding.
According to Makers documentThe Endgame plan is a comprehensive proposal aimed at strengthening the governance and tokenomics of the MakerDAO ecosystem, guiding the ecosystem to a self-sustaining, stable and resilient state with minimal changes to core components.
In addition to changes to tokenomics, core elements of the plan also include the introduction of semi-decentralized autonomous organizations to handle groups of aligned constituents focused on specific issues, broad focus areas, and high-level governance decisions.
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