Coin Edition -
- MakerDAO announces NewStable and NewGovToken to improve stability and governance.
- Token holders can easily upgrade from DAI to NST and MKR to NGT, with a 24,000:1 redenomination for NGT.
- The launch includes farming opportunities for NST holders, excluding U.S. residents and VPN users.
MakerDAO, the pioneering Ethereum-based protocol known for its DAI stablecoin, is gearing up for a significant evolution in its ecosystem. As anticipation builds for the upcoming launch season, the protocol has announced the introduction of two new tokens. Specifically, MakerDAO is introducing NewStable and NewGovToken to enhance the platform’s stability and governance.
As the launch season approaches, MakerDAO is preparing to introduce two new tokens – NewStable and NewGovToken.Explore the details below ↓ pic.twitter.com/twFAVkE1nZ— Maker (@MakerDAO) May 3, 2024
Notably, the proposed new tokens are part of Maker’s broader strategy to foster adoption and participation. NewStable, codenamed NST, is an upgraded version of DAI that promises to offer improved stability features. The official name will be disclosed during the eagerly awaited brand reveal.
In parallel, NewGovToken (NGT) is being introduced as a sophisticated governance token to incentivize greater community involvement. The final name for NGT will also be announced in the upcoming launch season.
After launch, DAI holders can upgrade to NST, with the added benefit of being able to revert to DAI if they wish. Similarly, Maker token (MKR) holders can convert their tokens into NGT at 24,000 NGT per MKR.
According to the team, these new tokens are not intended to replace the current DAI and MKR tokens. Instead, they seek to expand the ecosystem’s offerings. Users will have the flexibility to choose between the existing and new tokens.
Key functionalities of the coming NewStable include the ability for new and existing users to engage in farming to earn NGT from launch. Six hundred million NGT is distributed annually to NST holders participating in farming. However, this farming feature will not be available to U.S. residents or those using VPNs.
For NewGovToken, the redenomination to 24,000 NGT per MKR is a strategic move to encourage broader participation in governance. The upgrade process is reversible.
Ultimately, MakerDAO is introducing new features and opportunities, including Farming products and the Lockstake Engine, to boost user engagement and attract new and existing users to the Maker ecosystem.
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