New MakerDAO Tokens Were Introduced, DAI and MKR will Remain Available

Key Points:

• New MakerDAO tokens have been introduced, while DAI and MKR will remain available.
• Users can switch between old and new tokens as desired.

MakerDAO announced the upgraded versions of its native tokens, DAI and MKR, and named their new iterations NewStable and NewGovToken, respectively.

Read more: New Grayscale MakerDAO Trust Launched to Boost MKR

New MakerDAO Tokens Launched

Even with the new MakerDAO tokens, DAI and MKR are still available to users for transitioning on their own accord.

Launched in March, NewStable will replace DAI for new transactions at a 1:1 conversion rate: 1 DAI equals 1 NewStable. While DAI is going to persist forever, NewStable is going to fulfill mass-adopted use cases; DAI is going to serve crypto-native applications. Users can switch between both tokens as need be.

NewGovToken will take over as the voting party, but MKR will remain as it now works for governance in the future. At the initial stage, 1 MKR will amount to 24,000 NGT. This rebranding, which led to the advent of NewGovToken, would allow users to own more tokens in units and ring more of an influence in the ecosystem. This migration to NewGovToken will be quite flexible, and NewGovToken will be converted back to MKR.

New MakerDAO tokens are likely to be the same, probably for the near future. Thus, users can use and hold both tokens as usual.

How MakerDAO’s Model Maintains Stability Amid Controversies

MakerDAO is the issuer of the overcollateralized stablecoin DAI, one of the very first DeFi projects. Launched in 2017 on the Ethereum blockchain, DAI was always and has remained pegged to the US dollar. It has been stabilized through a mixture of several other cryptocurrencies and stablecoins, including USDC.

Even though there have been controversies about algorithmic stablecoins in the past, the MakerDAO model has remained stable and continues to enable the issuance of DAI-denominated loans against cryptocurrency collateral to this day.

Visited 4 times, 5 visit(s) today