MakerDAO Rolls Out New Versions of its Stablecoin and Governance Tokens

MakerDAO, the decentralized crypto lending platform responsible for the DAI stablecoin, has announced that MKR token holders can now convert their tokens into the newly issued NewGovToken (NGT). 

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

Alongside NGT, MakerDAO also introduced NewStable (NST), a stablecoin pegged 1:1 with DAI. Both DAI and MKR will continue to be available, with the conversion to NGT and NST being entirely optional.

Enhancing MakerDAO Governance

DAI is one of the largest U.S. dollar-pegged stablecoins governed by a decentralized protocol. Its governance is managed through MKR tokens, which allow holders to participate in decision-making within the MakerDAO ecosystem.

MakerDAO shared on X that both DAI and MKR tokens are expected to remain unchanged unless future governance decisions dictate otherwise. Per the announcement, MKR holders can exchange one MKR token for 24,000 NGT tokens. MakerDAO believes this move will enhance governance participation, as users will have a greater number of NGT tokens to engage with.

These tokens are integral to MakerDAO’s “Endgame” strategy, which aims to expand the Maker ecosystem through the introduction of new stablecoins and the exploration of additional revenue streams.

The “Endgame” Plan

Rune Christensen, MakerDAO’s co-founder, introduced the Endgame plan as a transformative initiative aimed at scaling DAI’s supply to $100 billion and beyond. This strategy seeks to address the current limitations of DAI by offering more decentralized and resilient stablecoins.

A significant aspect of the Endgame plan is to make savings more engaging through sustainable yield farming of SubDAO tokens. SubDAOs are highly efficient autonomous entities that leverage MakerDAO’s infrastructure while maintaining flexibility. 

DAI users can choose from various SubDAOs and begin farming these tokens. This approach is designed to foster a dynamic SubDAO ecosystem by attracting new community members, increasing vibrancy, and enhancing the ability to adapt to market opportunities and innovations, ultimately driving the growth and value of SubDAOs.