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MakerDAO Rolls Out New Versions of its Stablecoin and Governance Tokens

MakerDAO stated that DAI and MKR will remain unchanged unless governance decides otherwise and believes NGT will increase participation.

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). 

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.

Jonathan Agozie

Jonathan Agozie is a prompt engineer committed to crafting clear and technically sound content on blockchain, cryptocurrency, and Web3 technologies.