MakerDAO Proposes Optional Redenomination of MKR Governance Token

MakerDAO, the decentralized autonomous organization behind the Dai stablecoin, has proposed an optional redenomination of its MKR governance token. The plan is to convert each MKR into 24,000 NewGovToken (NGT) tokens as part of its strategic endgame.

Goals of Redenomination

The redenomination aims to enable broader participation in the platform’s governance by allowing more users to hold substantial amounts of NGT. This initiative seeks to democratize the decision-making process within the MakerDAO ecosystem.

Introduction of New Tokens

Alongside NGT, MakerDAO will introduce a new stablecoin called NewStable (NST), pegged 1:1 with Dai. Existing Dai and MKR tokens will remain active, allowing users the choice between original and new tokens.

MakerDAO confirmed that both tokens would remain unchanged for the foreseeable future, barring governance decisions.

User Choice and Flexibility

The proposal emphasizes user choice; upgrading to NewStable and NGT is optional. Users transitioning to new tokens can revert to Dai and MKR, ensuring flexibility within the ecosystem.

MakerDAO noted that it may eventually differentiate its stablecoin offerings, with Dai focusing on crypto-native use cases and NewStable potentially targeting broader adoption.

Current Market Position

Dai is currently the largest U.S. dollar-pegged stablecoin issued by a decentralized entity and the third-largest stablecoin overall, with a market cap 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 exceeding $2 billion. The Maker token has recently seen a 5% increase over the past 24 hours, trading at $2130.