As a seasoned analyst with over two decades of experience in the crypto space, I find myself intrigued by MakerDAO’s latest moves. The proposed token conversions and the introduction of NewStable (NST) stablecoin are not just strategic shifts but potential game-changers for the ecosystem.
As a researcher, I’m sharing an intriguing development concerning MakerDAO, the self-governing entity that manages Dai (DAI). They are contemplating a proposal that would see each of their governance tokens, MKR, transformed into 24,000 NewGovTokens (NGT) as part of their strategic long-term plan. This potential redenomination of the MKR token is a piece of their broader strategy, which they aim to unveil in the upcoming months.
MakerDAO Prepares to Launch New Stablecoin
MakerDAO intends to encourage a larger number of users to take part in the governance of their platform by distributing more of the NGT token, the new governance token. This move aims to create a more democratic environment for making decisions within the Decentralized Autonomous Organization (DAO), as it will be influenced by a broader range of voices over time.
In addition to unveiling a fresh governance token called MakerDAO NewGovernance Token (MNT), the organization also intends to launch a new stablecoin known as NewStable Coin (NSC). It’s important to note that, in its current formulation, NSC will maintain parity with the DAI stablecoin. Users are not required to adopt either the NST or the MNT token; they can choose whether or not to do so, as the proposal underlines the importance of choice and user autonomy.
DAI will persist indefinitely. Users have the flexibility to move up to NewStable, and they can always return to using DAI whenever they wish.
1 DAI = 1 NewStable (NST)
Over time, the ecosystem is likely to develop methods for distinguishing between DAI and NewStable. While DAI primarily caters to crypto-specific applications, …
— Maker (@MakerDAO) August 22, 2024
1. Option: Both DAI and MKR will continue in operation, enabling users to select either the original or updated versions of these tokens until further notice from the MakerDAO governance. Additionally, users who swap their MKR for NewGovToken can revert back to their initial tokens at a later time.
Essentially, MakerDAO aims to preserve adaptability within its system. In time, it plans to devise methods to clearly differentiate DAI from NST. While DAI is expected to persist as a token mainly for cryptocurrency applications, the upcoming stablecoin might focus on achieving widespread acceptance.
MakerDAO’s Plan to Dissolve DAI
Typically, MakerDAO is recognized for placing great emphasis on governance when making decisions. The recent news about token conversions follows shortly after MakerDAO’s governing body took a significant step in adjusting the conditions for utilizing Wrapped Bitcoin (wBTC) as collateral for new loans.
As a seasoned investor who has witnessed the rise and fall of various digital assets over the years, I have become increasingly cautious when it comes to investing in virtual currencies like wBTC. The recent decision to halt further borrowing using this asset is a wise move that reflects my own growing concerns about its management and security.
Recently, Rune Christensen, CEO and co-founder of MakerDAO, declared in May on X platform that a fresh token will be introduced to replace DAI. He referred to it as PureDai, with the goal of making the system more decentralized compared to DAI, which is often viewed as centralized. At that time, Christensen mentioned that the forthcoming stablecoin would utilize decentralized collateral assets such as Ethereum (ETH) and staked Ether (stETH).
Contrary to NewStable tokens, PureDai undergoes a one-time upgrade that’s irreversible, meaning it doesn’t necessitate further changes afterward.
“Over a number of years, it’s anticipated that Dai will no longer be used as all users and connections move to either NewStable or PureDai. When this transition takes place will depend on how rapidly the ecosystem embraces NewStable and PureDai, according to the MakerDAO CEO.”
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2024-08-23 13:19