Rune Christensen, inventor of MakerDAO, has announced two new stablecoins, PureDAI and NewStable, as part of the protocol’s disputed Endgame plan.
“From the moment Dai started scaling, it has been straddling two worlds,” Christensen said in a MakerDAO forum post about the announcement. These new coins are expected to replace DAI, which presently has a market capitalization of $5.4 billion and ranks third in the stablecoin industry.
Christensen aims to strike a balance between two decentralized stablecoin approaches: prioritizing usefulness and scale with a dollar peg backed by real-world assets (RWA) and pursuing complete freedom from centralized governance.
According to Christensen, PureDai’s launch was aimed at consumers that support a totally decentralized vision. In addition, the decentralized stablecoin will have a free-floating peg, which means it may not be associated with the dollar.
PureDai will function as a truly decentralized alternative to its US dollar-pegged stablecoin. PureDai, a stablecoin that will only run on the Ethereum mainnet, relies exclusively on decentralized oracles and will be backed by ether and Lido staked ether (stETH).
NewStable is expected to be the principal replacement for DAI, focusing on growth, yield, and resilience. It will inherit MakerDAO’s RWA feature while remaining connected to Maker and will introduce a new freeze function similar to other RWA-backed stablecoins.
According to Christensen, there will be a burn mechanism in place, as well as an initial “genesis supply” of 2 billion PureDAI governance tokens, which will be dispersed in 400 million batches over the next five years.
Christensen stated that customers who support the concept of pure decentralization would have the choice of using PureDai, a second, purely decentralized stablecoin, in addition to NewStable, once both are accessible in the future years.
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