Original author: BlockTempo
MakerDAO founder Rune Christensen further introduced the design and implementation details of its new stablecoin PureDai at X. PureDai aims to be a fully decentralized stablecoin with key features including a floating target price and highly decentralized collateral.
After Rune Christensen, founder of the decentralized lending protocol MakerDAO, announced yesterday about two new stablecoin plans in different directions, NewStable and PureDai, in the Endgame plan, he further introduced his ideas and principles for the design and implementation of PureDai at X today.
Dynamic Zone reported on the 4th the details of NewStable (NST). It will serve as an upgraded version of Dai, so it still focuses on the stable link with the US dollar. With RWA as a reserve asset, Dai holders can choose whether to upgrade to NST. NST.
What is PureDai?
Back to PureDai, Rune said its goal is to achieve an idealized Dai, which is the "truly decentralized" stablecoin desired by many Maker community elders (OGs) and the broader Ethereum cypherpunk vision and idealists.
To achieve this goal, Rune designed PureDai in an uncompromising way, with the following features:
1. Floating target price
2. Decentralized high-quality collateral: Only extremely decentralized and well-verified collateral (such as ETH, STETH) is accepted. In addition, PureDai will launch a lending platform to maximize the supply of PureDai.
3. Highly decentralized oracle
4. Minimal governance: no budget, no contributors.
5. Permanently positioned on the Ethereum mainnet: Layer 2 solutions and bridges are maintained by the community.
6. Simple token economics: promote the growth of stablecoin supply side.
In addition, the name of PureDai is currently only tentative and the final name will be finalized based on the opinions of the community and future users.
Floating target price
The most important feature of PureDai is the ability to achieve a floating target price. Since there is no guarantee of a long-term peg to the US dollar, PureDai must achieve a free-floating anchor because RWA (real-world assets) cannot be used on a large scale to lower prices when supply exceeds demand.
To maintain price stability, Rune noted the need to introduce a negative target rate (meaning the cost of holding stablecoins would increase) in response to sustained high demand exceeding supply, which would cause the target price to decline over time, thereby theoretically maintaining Some form of price stability, but this does not guarantee a fixed ratio to any specific currency. This is the mechanism adopted by decentralized stablecoins such as RAI and HAI.
Rune said that while the existing Dai will remain pegged to the US dollar, users can choose to upgrade to PureDai to enjoy its extreme decentralization and resilience.
PureDai Governance Token Economics
Just as NewStable has its own governance token (codenamed NewGovToken, NGT), PureDai will also have its own governance token (PureDai Governance Token), which has the following characteristics:
Initial supply is 2 billion
The initial supply will be distributed through NewStable mining on the Ethereum mainnet over a five-year period.
Permanently distributed to PureDai vaults users to subsidize PureDai generation
PureDai’s surplus will be used to accumulate governance tokens, which will be achieved through Smart Burn Engine
Governance tokens serve as backstop in case of bad debts on PureDai
The initial supply of PureDai's governance tokens will be distributed to NewStable users on the Ethereum mainnet, 400 million tokens per year for five years (subject to adjustment). Rune said this will help incentivize the Maker community to develop and release PureDai and ensure that the owners of governance tokens are widely distributed. PureDai will not become a SubDAO, its governance structure will be completely independent of Maker, and there will be no permanent token release in favor of Maker.
Original link
