MakerDAO plans to optionally redenominate 1 MKR into 24,000 NGT tokens as part of endgame

Crypto Ecosystems • August 23, 2024, 2:12AM EDT
Published 1 minute earlier on
UPDATED: August 23, 2024, 3:18AM EDT
The Block

Quick Take

  • As part of its endgame plan, MakerDAO has planned an optional conversion of each MKR governance token into 24,000 NewGovToken (NGT) tokens.
  • 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, proposed an optional 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 soon.

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.

The proposal emphasizes user choice, stating that upgrading to NewStable and NewGovToken is optional. Users who transition to the new tokens can revert to the original Dai and MKR, ensuring that the MakerDAO ecosystem remains flexible.

MakerDAO added that its ecosystem would "eventually explore ways to differentiate Dai and NewStable." According to the DAO, Dai may continue its focus on crypto-native use cases in this setup, and NewStable may target mass adoption.
 
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.
 
The project is governed by the Maker token, which has an approximate supply of 1 million tokens and a market cap of over $2 billion. According to The Block's price page, the token has been up 5% over the past 24 hours and currently trades at $2130.
 

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About Author

Vishal Chawla is The Block’s Crypto Ecosystems Editor and has spent over seven years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal can be reached on Twitter at @vishal4c and via email at [email protected]

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