MakerDAO Rolls Out MKR And DAI Token Upgrade, But There’s A Catch

Decentralized blockchain protocol MakerDAO has announced an upgrade for DAI and MKR tokens. The platform released two new assets, NewStable and NewGovToken which will exist alongside DAI and MKR. This is part of MakerDao’s Endgame plan to improve the protocol’s governance and tokenomics. 

MakerDAO Releases Two New Assets 

MakerDAO unveiled two new crypto assets which will serve as upgraded versions of MKR and DAI. In an Aug 22 post on X (formerly Twitter), the platform informed the community of the update stating that DAI and MKR will remain available for use unless subsequent changes occur.

“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 both tokens as before.”

According to the release, DAI holders can upgrade to NewStable with the option of a reversion as 1 DAI will be equal to 1 NewStable. Although both assets will operate simultaneously, the ecosystem will eventually differentiate their functions with NewStable targeting mass adoption while DAi will stress crypto use cases. 

DAI will remain available indefinitely. Users can upgrade to NewStable, with the option to revert back to DAI anytime.

1 DAI = 1 NewStable (NST)

The ecosystem will eventually explore ways to differentiate DAI and NewStable, with DAI focusing on crypto-native use cases and…

— Maker (@MakerDAO) August 22, 2024

On the other hand, NewGovToken will be introduced for voting same as MKR with efficient conversion between both assets. One MKR will equal 24,000 NGT. This will increase community participation as more users can hold the token to influence decisions in the ecosystem. At press time, MKR’s price stands at $2033, surging 2% in the last 24 hours.

The Endgame Plan 

MakerDAO’s Endgame plan has been lauded across several quarters as it seeks to increase efficiency in the market. This initial Endgame Proposal was to overhaul governance and tokenomics in the ecosystem consisting of elements such as Maker Atlas, SubDAO, etc. 

The major positives of the move revolve around its goals which make the platform more resilient to external risks. “Ensure that the Maker Ecosystem can scale in a decentralized manner. Align incentives for all participants in the Maker ecosystem resulting in positive community culture and engagement. Reduce governors overhead for MKR holders and Maker delegates.”

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David Pokima

David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.

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