The original DAI will eventually phase out as users continue using PureDai or NewStable.
Rune Christensen, CEO and co-founder of MakerDAO, announced in a post on X that a new token will emerge in the future that will replace DAI, a stablecoin pegged to the US dollar. He referred to this new project as the “return to the ideological roots of DAI”. This upcoming project, tagged PureDai, aims to make the ecosystem more decentralized, unlike DAI, which is more centralized. The upcoming stablecoin will use decentralized collateral assets like Ethereum (ETH) and staked Ether (stETH).
Transition from DAI to PureDai and NewStable
Rune revealed that the project will be released in its final form. Once released, it will be unchangeable, requiring no upgrade, and it will be a fully independent project, separated from its mother project, Maker.
Current DAI users will be allowed to upgrade to PureDAI using the Maker frontend, a system that will allow a smooth transition. The new project will be launched on the Ethereum network. However, Layer 2s and bridges can decide to move it to another blockchain later.
The CEO in his post further revealed that after the launch of PureDai, users of DAI would have to select from two complementary choices available to them. Rese choices include migrating to PureDai for fully decentralized collateral or moving to NewStable, a traditional USD-pegged stablecoin with yield features. The original DAI will eventually phase out as users continue using PureDai or NewStable. Rune stated:
“After multiple years, it is expected that Dai will be fully deprecated as all users and integrations migrate to either NewStable or PureDai. The timeline for when this happens will depend on how quickly the ecosystem adopts NewStable and PureDai.”
The news about PureDai comes after the new heights that DAI recently reached. Last month, the stablecoin set a record of reaching $240 billion in on-chain transaction volume, surpassing the weekly transactions of other stablecoins combined within that period. The crypto project benefits are undoubtedly attracting users to the platform, including getting DAI loans by depositing approved collateral assets into the Maker protocol smart contract known as Collateral Debt Positions (CDPs).
The Future of Maker (MKR)
Rune also gave insight into the future of MKR (Maker), a governance token. He noted that the crypto project will not be scrapped. Instead, it will be attached to MakerDAO as it works towards its launch season. Holders of the token will be able to upgrade to NewGovToken at a ratio of 1:24,000. He also added that individuals owing this MKR could decide to keep it until the near future, as features of NewGovToken apply to it.
“MKR holders can choose to keep holding their MKR, as the new features of NewGovToken also apply to MKR. It will be possible to use the LockStake Engine directly with MKR without having to upgrade to NewGovToken,” he said.
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