Maker to introduce upgraded stablecoin and governance token in its ecosystem
- Maker plans to introduce a new stablecoin and governance token during its upcoming brand reveal.
- Holders of the codename New Stable token would be able to farm the newly introduced NewGovToken immediately after launch.
- MKR is up 8% following the announcement.
Maker (MKR) announced in an X post on Friday that it would launch a new stablecoin and governance token that unlocks new features and opportunities. MKR's price warmed nicely to the announcement, posting gains above 8% on the day.
Read more: Maker loses 9% in past 24 hours as whales sell MKR for profits
Maker to introduce new tokens
Maker will introduce two new tokens into its ecosystem as its launch season approaches. The two new tokens, codenamed NewStable and NewGovToken, will allow users to "gain access to the latest functions in the upcoming stage of the Maker ecosystem."
According to Maker, NewStable (NST) would serve as an upgraded version of the DAI stablecoin with improved features to boost adoption and maintain stability. NewGovToken (NGT), on the other hand, would help encourage broader participation in governance and "more dynamic decision-making."
NST would be available to both new users and existing DAI users, who would have the ability to convert their holdings back and forth whenever they like.
Also read: MakerDAO whales sold over $9 million in tokens, MKR price takes a hit
While users could also convert their MKR to NGT, Maker redenominated the new token governance token's supply. As a result, 1 MKR would convert to 24,000 NGT. Maker has said that the token would boost the community's engagement in governance. "It allows more users to hold a significant number of NewGovToken and actively influence the future of the ecosystem," said Maker.
While DAI and MKR's brand names are very popular among crypto users, the stablecoin issuer aims to strengthen the popularity of its new tokens by distributing 600 million NGT via farming to NST holders. However, farming won't be available to US residents and VPN users.
It's important to note that, according to Maker's announcement, NST and NGT would not replace DAI and MKR.
As the crypto community awaits the official name of both tokens upon their brand reveal, MKR's price is warming up quite well to the announcement, gaining more than 8% in the past 24 hours.
MKR may experience more volatility in the coming weeks as the new tokens debut in the market.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
