Crypto lending platform MakerDAO, the protocol behind the DAI stablecoin, has announced plans to introduce an optional conversion of MKR tokens to a newly-issued governance token, NewGovToken (NGT). The conversion aims to increase governance participation within the platform.
Under the new system, MKR holders can exchange one MKR token for 24,000 NGT tokens. The initiative is designed to make governance more accessible, as users will hold a larger quantity of NGT tokens, potentially encouraging greater participation in governance votes. Currently, MKR is trading at $2,084, with a total supply of 977,631. The high nominal value and limited supply of MKR have presented challenges in achieving broad engagement in governance decisions.
In addition to NGT, MakerDAO also revealed NewStable (NST), a new stablecoin that will be pegged 1:1 with DAI. Despite the introduction of these new assets, both DAI and MKR will remain available, and the conversion to NGT is entirely optional. “Both tokens are expected to stay unchanged for the foreseeable future, unless governance decides otherwise,” MakerDAO shared in a statement on X.
The launch of NGT and NST is part of MakerDAO’s broader “endgame” plan, which envisions expanding the Maker ecosystem through the creation of new stablecoins and revenue-generating opportunities.
