- MakerDAO, a leading platform in the decentralized finance (DeFi) sector, has announced plans to introduce two new tokens to its ecosystem, namely NewStable (NST) and NewGovToken (NGT).
- NewStable is introduced as an upgraded version of MakerDAO’s existing stablecoin, Dai, designed for broader adoption and comes with advanced stability features.
- According to the announcement, NST holders will have the opportunity to farm NGT from the launch, with a total of 600 million NGT to be distributed annually to participant NST holders through farming.
MakerDAO, a prominent player in the DeFi space, is set to launch two new tokens, NewStable and NewGovToken, aimed at enhancing stability and governance within its ecosystem.
Introduction of NewStable and NewGovToken
MakerDAO’s official announcement revealed the introduction of two new tokens, NewStable (NST) and NewGovToken (NGT), into its ecosystem. NewStable is presented as an enhanced version of the existing stablecoin, Dai, designed for wider adoption and improved stability features. It will allow continuous conversion back to another stablecoin, DAI.
Farming Opportunities with NewStable
From the launch, NST holders will have the opportunity to farm NGT. Through this farming process, a total of 600 million NGT will be distributed annually to participating NST holders, providing an added incentive for users to adopt the new token.
NewGovToken: A Refined Approach to Governance
NewGovToken represents a refined approach to governance within the MakerDAO ecosystem. It is designed to encourage wider participation and more dynamic decision-making processes. Each Maker (MKR) token will be convertible to 24,000 NGT.
Strategic Re-nomination of NewGovToken Supply
The total supply of NewGovToken has been strategically re-nominated compared to MKR. As a result, during the upgrade, each MKR will convert to 24,000 NewGovToken. This revaluation of NewGovToken will result in more users owning a significant number of NewGovTokens.
Conclusion
The introduction of these new tokens represents an expansion and will not replace the existing Dai (DAI) and Maker (MKR) tokens. This move by MakerDAO signifies a strategic step towards enhancing stability and governance within its ecosystem, potentially attracting more users and fostering greater participation in decision-making processes.
