MakerDAO has planned an optional conversion of each MKR governance token into 24,000 NewGovToken (NGT) tokens as part of its Endgame plan.
The redenomination aims to broaden participation in MakerDAO’s governance by allowing more users to hold significant amounts of NGT.
MakerDAO, the decentralized autonomous organization behind the DAI stablecoin, announced the redenomination of its MKR governance token, converting each MKR into 24,000 NewGovToken (NGT) tokens.
This is part of its strategic Endgame plan, which is expected to launch in the coming months.
MakerDAO noted that the redenomination aims to enable broader participation in the platform’s governance by allowing more users to hold significant amounts of the new governance token, NGT, thereby democratizing the decision-making process.
Alongside the introduction of NGT, MakerDAO will be rolling out a new stablecoin, NewStable (NST), pegged 1:1 with Dai. The existing Dai and MKR tokens will remain active, allowing users to choose between the original tokens and their new counterparts.
“Both tokens are expected to stay unchanged for the foreseeable future, unless governance decides otherwise,” MakerDAO noted.
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… pic.twitter.com/ucB6s8qsqF
— Maker (@MakerDAO) August 22, 2024
The proposal emphasizes user choice, stating that upgrading to NewStable and NewGovToken is optional. Users who decide to transition to the new tokens can revert to the original Dai and MKR if they choose, ensuring that the MakerDAO ecosystem remains flexible.
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MakerDAO added that its ecosystem would “eventually explore ways to differentiate Dai and NewStable.”
In this setup, Dai may continue its focus on crypto-native use cases, and NewStable may target mass adoption, according to the DAO.
Dai is the largest U.S. dollar-pegged stablecoin issued by a decentralized entity. It is also the third-largest stablecoin overall, following Tether USD and Circle’s USDC, with a market capitalization of $5.2 billion.
