MakerDAO unveils two new tokens in a major overhaul – CoinJournal

admin
May 3, 2024
8:50 pm

The two new tokens teased by MakerDAO are NewStable (NST) and NewGovToken (NGT).
NST replaces Dai and offers upgraded features while NGT replaced MKR and empowers broader governance participation.
Existing Dai and MKR holders will have the choice to transition to the new tokens or continue using their current assets.

MakerDAO, the decentralized autonomous organization that oversees the Maker Protocol, has announced the introduction of two new tokens – NewStable (NST) and NewGovToken (NGT).

These tokens mark a significant milestone in MakerDAO’s evolution, offering enhanced stability and governance features within its ecosystem.

NewStable (NST) token

The NewStable (NST) token represents an upgraded version of Dai, designed to promote broader adoption and provide advanced stability features.

Existing Dai holders will have the option to seamlessly upgrade to NST while retaining the flexibility to convert their holdings back to Dai at any time.

Additionally, NST holders will be able to participate in farming activities to earn NewGovToken (NGT) from the moment of launch.

NewGovToken (NGT) token

The NewGovToken (NGT) token serves as the new governance token within the MakerDAO ecosystem, offering Maker (MKR) holders the opportunity to upgrade their tokens.

Each MKR token will convert to 24,000 NGT during the upgrade process, strategically redenominated to encourage broader engagement in governance activities. This initiative aims to enable more users to hold a significant number of NGT, empowering them to actively influence the future direction of the MakerDAO ecosystem.

MakerDAO expanding its offerings while maintaining flexibility

With the introduction of NST and NGT, MakerDAO is expanding its offerings while maintaining flexibility for users.

The upcoming brand reveal will mark the official introduction of these tokens into the ecosystem, providing users with access to new features and opportunities.

In addition to the token launch, MakerDAO is also exploring investment opportunities to further strengthen its ecosystem. Plans include a substantial investment of $600 million in DAI into USDe and staked USDe (sUSDe) through Morpho Labs’ DeFi lending protocol. These investments aim to support the development and growth of stablecoin assets within the DeFi space.