MakerDAO founder introduces new stablecoins: NewStable and PureDAI
Christensen claims that the new stablecoins represent a return to the project's ideological roots.
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Rune Christensen, the founder of MakerDAO, has unveiled two new stablecoins, NewStable and PureDAI, as part of the protocol’s controversial Endgame plan.
The new tokens are intended to eventually replace DAI, which currently commands a $5.4 billion market cap, placing it third overall in the stablecoin sector.
Christensen’s goal is to reconcile the two opposing paths for decentralized stablecoins: one prioritizing utility and scale by choosing a dollar peg backed by real-world assets (RWA) as collateral, and the other demanding complete independence from any sort of centralized control.
He argues that achieving both is now possible with the introduction of NewStable and PureDAI.
“From the moment Dai started scaling, it has been straddling two worlds,” Christensen said in a post to MakerDAO’s forums.
NewStable will be the main successor to DAI, focused on growth, yield, and resilience. It will take over the RWA aspect of MakerDAO while remaining attached to Maker, and introduce a novel freeze function similar to other RWA-backed stablecoins. Users can opt to upgrade their DAI to NewStable, although DAI will continue to operate as is.
“One world is the culture of pure decentralization as introduced with Bitcoin. The other is the desire to fulfill the original purpose of DAI by delivering utility and value to real people at scale,” Christensen explains, providing a distinction between the Endgame plan and the core values of the alpha crypto.
PureDAI, on the other hand, is positioned as a “return” to the project’s “ideological roots” supported by early community members and cypherpunk idealists. It will feature a free-floating target which “only very decentralized” participants can use as collateral through ETH and staked ETH (stETH). The new stablecoins will also allow users to leverage maximally decentralized oracles, minimal governance, and simple tokenomics that will promote stablecoin supply-side growth.
Christensen claims that there will be an initial “genesis supply” of 2 billion PureDAI governance tokens which will be distributed in batches of 400 million over five years, with a burn mechanism set in place.
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