TL;DR
- MakerDAO launches the NewStable and NewGovToken, while maintaining the availability of the current DAI and MKR tokens.
- NewStable will replace DAI for new transactions at a 1:1 conversion rate, while DAI will continue to be used for specific applications.
- NewGovToken will replace MKR in voting functions, with an initial rate of 1 MKR equaling 24,000 NewGovToken, allowing for greater flexibility and more units.
MakerDAO has introduced new versions of its native tokens, DAI and MKR, with the launch of NewStable and NewGovToken. This update allows users to conduct transactions with the new tokens while retaining the availability of the old ones.
NewStable will replace DAI for new transactions at a 1:1 conversion rate. However, the well-known stablecoin will continue to exist for specific applications within the ecosystem, while NewStable will focus on broader use cases.
Endgame introduces NewStable and NewGovToken, the upgraded versions of DAI and MKR.
However, DAI and MKR will remain available. Both tokens are expected to stay unchanged for the foreseeable future, unless governance decides otherwise.
You can continue to hold and use… pic.twitter.com/ucB6s8qsqF
— Maker (@MakerDAO) August 22, 2024
On the other hand, NewGovToken will replace MKR for voting functions. Initially, 1 MKR will equal 24,000 NewGovToken. Although MKR will continue to be used for long-term governance, the new token aims to provide users with the ability to hold more units and increase their influence within the ecosystem. The migration to NewGovToken will be flexible, allowing for conversion back to MKR when necessary.
MakerDAO Enhances Its Capabilities and Maintains Flexibility
The introduction of these new tokens is part of MakerDAO’s strategy to improve the functionality and flexibility of its platform. Users will be able to switch between old and new tokens as needed, ensuring a smooth and adaptable transition.
MakerDAO is primarily known for issuing the stablecoin DAI. Since its launch in 2017, it has maintained the stability of its model despite controversies surrounding algorithmic stablecoins. DAI has been pegged to the US dollar and stabilized through a mix of other cryptocurrencies and stablecoins like USDC. This approach has allowed the protocol to continue issuing DAI-denominated loans against cryptocurrency collateral, maintaining its stability.
The introduction of NewStable and NewGovToken represents a significant advancement for MakerDAO, strengthening its market position and offering users new tools to interact with its platform. The flexibility in transitioning between old and new tokens promises a positive impact on user experience and ecosystem governance.
