New MakerDAO Tokens Are Launched To Promote Protocol Governance

Key Points:

• New MakerDAO tokens, NewStable and NewGovToken, were introduced to improve stability and governance.
• NewStable offers upgrades for broader adoption, while NewGovToken encourages wider participation in governance.

MakerDAO, the decentralized autonomous organization behind the Maker Protocol, is set to unveil two new tokens, NewStable (NST) and NewGovToken (NGT), in a bid to bolster its governance structure and broaden its user base.

New MakerDAO Tokens Unveiled: Enhancing Stability and Governance

NewStable, an upgraded iteration of Dai, promises enhanced stability features and is poised for wider adoption. The official name for NewStable will be revealed alongside a brand reveal. Similarly, NewGovToken represents a refined approach to governance within the MakerDAO ecosystem aimed at fostering broader participation and more dynamic decision-making. Its official name will also be disclosed through the brand reveal.

The transition process for token holders is straightforward. Dai holders can seamlessly upgrade to NewStable, with the flexibility to revert to Dai at any time. For NewGovToken, each Maker token (MKR) can be exchanged for 24,000 NGT, encouraging broader participation in governance activities.

It’s important to note that these new MakerDAO tokens are expansions and will not replace existing Dai (DAI) and Maker (MKR) tokens. Users will have the option to transition to NewStable and NewGovToken, with the flexibility to convert holdings back to Dai.

Transition Options and $600 Million Investment

NewStable (NST) holders will also have the opportunity to participate in farming activities to earn NGT from the launch date. However, farming activities will not be accessible to US residents and VPN users. Approximately 600 million NGT will be distributed annually to participating NST holders through farming.

In addition to the launch of the new MakerDAO tokens, the platform plans to invest $600 million in DAI into USDe and staked USDe (sUSDe) through Morpho Labs’ DeFi lending protocol. These investments aim to support the growth of stablecoin assets within the DeFi space.

MakerDAO, known for introducing the first unbiased currency, DAI, has navigated controversies surrounding algorithmic stablecoins. DAI overcollateralized and stabilized through cryptocurrencies and stablecoins like USDC, remains a leading stablecoin pegged to the US dollar. Since its launch in 2017 on the Ethereum blockchain, DAI has amassed approximately $10.6 billion in crypto-backed assets and $100 million in real-world assets.