The decentralized autonomous organization (DAO) behind the Dai stablecoin, MakerDAO, has proposed a significant revision in its governance structure. As part of the strategic “Endgame Plan,” the DAO has suggested the optional revaluation of the MKR governance token. If the proposal is accepted, each MKR token will be converted into 24,000 NewGovToken (NGT) tokens, aiming to democratize governance within the MakerDAO ecosystem.
MakerDAO Aims to Broaden Governance Participation with New Token and Stablecoin
The revaluation announced by MakerDAO is planned to facilitate broader participation by enabling more users to hold a significant amount of the new governance token, NGT. This change is expected to reduce entry barriers and allow a more diverse group of stakeholders to have a meaningful impact on the DAO’s decision-making process.
In addition to NGT, MakerDAO will introduce a new stablecoin, NewStable (NST), which will be pegged 1:1 with Dai. This move indicates MakerDAO’s intention to appeal to a broader audience with NewStable, while continuing to focus on Dai’s established role within the crypto-native community.
Users Will Be Given a Choice
Despite these new additions, MakerDAO guarantees that the existing Dai and MKR tokens will remain functional, offering users the flexibility to choose between the original tokens and their new counterparts. The DAO emphasized that upgrading to NewGovToken and NewStable is entirely optional, and users who switch to the new tokens will retain the option to revert to Dai and MKR at any time.
MakerDAO stated, “The flexibility of our ecosystem is crucial. Unless governance decides otherwise, both the original and new tokens will coexist for the foreseeable future.”
MakerDAO also hinted at potential future developments, suggesting that the use cases for Dai and NewStable might eventually differentiate. According to the proposal, while Dai may continue to focus on crypto-native applications, NewStable could be positioned for broader, mass-market adoption.
Currently, Dai holds the distinction of being the largest decentralized, USD-pegged stablecoin with a market cap of $5.2 billion, making it the third-largest stablecoin overall, following Tether USD and Circle’s USDC.
