MakerDAO Unveils Plans to Optionally Convert 1 MKR into 24,000 NewGovToken

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The decentralized platform MakerDAO, the issuer of Dai stablecoin, has proposed a change to its MKR governance token. According to the announcement, each MKR token will convert into 24,000 NewGovToken (NGT).

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

However, this change is optional for users. MakerDAO stated that this update is part of its vital endgame plan, which will likely launch soon. 

The DAO claims this upgrade will encourage more community participation in governance. It will enable more users to acquire the new governance token (NGT), improving democratic decision-making.

MakerDAO Plans to Give Ecosystem Governance a Facelift

In addition to the proposed governance change, MakerDAO will launch a new stablecoin, NewStable (MST), pegged 1:1 with Dai. 

The new NGT governance token is only an upgraded version of MKR and DAI. Despite NGT’s introduction, DAI and MKR will remain available. So, users can choose between the original tokens and the new ones.

Further, MakerDAO stated both DAI and MKR would stay unchanged until governance proposals say otherwise. 

The Endgame proposal focuses on user choice since upgrading to NewStable or NewGovToken is not compulsory. Users who change to the new tokens can switch back to DAI or MKR, keeping the ecosystem flexible.

DAI will remain available indefinitely. Users can upgrade to NewStable, with the option to revert back to DAI anytime.

1 DAI = 1 NewStable (NST)

The ecosystem will eventually explore ways to differentiate DAI and NewStable, with DAI focusing on crypto-native use cases and…

— Maker (@MakerDAO) August 22, 2024

However, MakerDAO noted that measures will be implemented to differentiate between Dai and NewStable. It also revealed that Dai may remain the utility token for crypto-native use cases while NewStable focuses on Mass adoption.

For clarity, DAI is the largest stablecoin pegged to the US dollar and issued by a decentralized platform. It ranks as the third-largest stablecoin in the crypto market, behind Tether USDT and Circle’s USDC.

DAI has a market capitalization of $5.2 billion and is governed by the Maker (MKR) token. MKR has an estimated supply of 1 million tokens with a market cap exceeding $2 billion.

What Maker Endgame is All About 

Maker Endgame introduces a series of five major product launches that help Maker dominate in the DeFi and AI sectors. The Endgame involves a new brand for the MakerDAO, a new stable coin, and a new governance token.

Maker Endgame is a series of 5 major product launches that will take Maker to the forefront of DeFi and AI innovation.

It involves a new brand, new stablecoin and governance token, 6 new SubDAOs distributed through farming and Governance AI Toolshttps://t.co/enFDPag2eL pic.twitter.com/kR4si7vo0n

— Rune (@RuneKek) May 11, 2023

Also, six new SubDAOs evenly distributed through farming and Governance AI tools complete the Endgame roadmap. Maker unveiled its plans for the Endgame in May 2023, and the launch of a new stablecoin and governance token aligns with the project.

Other protocols have already supported the project. Decentralized governance solutions provider StableLab announced that it will contribute to the MakerDAO Endgame ecosystem.

Announcing StableLab x @MakerDAO

We are thrilled to announce that StableLab will contribute to MakerDAO to support its Endgame ecosystem.

Our contribution will focus on protocol business development, such as the protocol features integrations, and securing strategic… pic.twitter.com/E98oOhy3aw

— StableLab (@StableLab) August 20, 2024

StableLab aims to inform users of potential integration opportunities with the Maker protocol and its new features. For over six years, StableLab has proudly supported MakerDAO in several capacities.

So, it will leverage its extensive business experience to support Maker’s Endgame. Additionally, the company will provide analytical reports on the effect of certain integrations on MakerDAO.

MakerDAO maintains a flexible ecosystem where its four tokens, MKR, DAI, NST, and NGT, are relevant. However, this pattern may change if a new governance proposal is approved in the ecosystem.