- MakerDAO launched new tokens called NewStable and NewGovToken.
- The price of MKR reacted positively and surged by 8%.
MakerDAO [MKR] has been one of the most dominant players in the DeFi sector for quite some time. One reason for the same has been the constant protocol expansions.
New launches on MakerDAO
In their most recent development, the MakerDAO governance has introduced two new tokens — NewStable [NST] and NewGovToken [NGT].
These are placeholders for the token’s final names, which will be revealed at a later date.
Source: Santiment
Looking at the finer details
NST represents an upgraded iteration of DAI, MakerDAO’s flagship stablecoin.
NGT, on the other hand, signifies a refined approach to governance. This token is intended to incentivize wider participation and foster a more dynamic decision-making process within the MakerDAO ecosystem.
DAI holders do not have to worry about transitioning their existing tokens. DAI holders can seamlessly upgrade to NST, while maintaining the flexibility to revert to DAI whenever they choose.
For NGT, each MKR token can be exchanged for a hefty 24,000 NGT. This, according to MakerDAO, aims to specifically encourage broader participation in governance.
With a larger pool of NGT holders, more users will have the opportunity to significantly influence the MakerDAO ecosystem’s future.
It’s important to note that these new additions are envisioned as an expansion, not a replacement, for the existing DAI and MKR tokens.
Functionally, both new and existing DAI users will have access to the NewStable token. Interestingly, NST holders will be incentivized to participate in farming to earn NGT right from launch.
Realistic or not, here’s MKR’s market cap in BTC’s terms
However, this farming opportunity will be restricted to users residing outside the United States and those not utilizing VPNs.
The price of the MKR token reacted extremely positively to this news, causing the token to surge by 8.07% in the last 24 hours. The number of MKR holders also grew during this period.
Source: Santiment