News
Will MakerDAO’s NST and NGT tokens be good news for MKR price?
- MakerDAO has launched new tokens called NewStable and NewGovToken.
- The price of MKR reacted positively and increased by 8%.
MakerDAO [MKR] has long been one of the most dominant players in the DeFi space. One reason has been the constant expansion of the protocol.
New launches on MakerDAO
In their most recent development, MakerDAO governance introduced two new tokens: NewStable [NST] and NewGovToken [NGT].
These are placeholders for the final token names, which will be revealed at a later time.
Source: Santimento
Looking at the finer details
NST represents an updated iteration of DAI, MakerDAO’s flagship stablecoin.
NGT, on the other hand, involves a refined approach to governance. This token is intended to incentivize broader participation and promote more dynamic decision-making within the MakerDAO ecosystem.
DAI holders do not need to worry about transferring existing tokens. DAI holders can upgrade to NST seamlessly, while maintaining the flexibility to switch back to DAI whenever they wish.
For NGT, each MKR token can be exchanged for as much as 24,000 NGT. This, according to MakerDAO, is aimed at specifically encouraging wider participation in governance.
With a larger pool of NGT holders, more users will have the opportunity to significantly influence the future of the MakerDAO ecosystem.
It is important to note that these new additions are intended as an expansion, not a replacement, of the existing DAI and MKR tokens.
Functionally, both new and existing DAI users will have access to the NewStable token. Interestingly, NST holders will be incentivized to participate in farming to earn NGT right from launch.
Realistic or not, that’s it The market capitalization of MKR in terms of BTC
However, this farming opportunity will be limited to users located outside the United States and those who do not use VPNs.
The price of the MKR token reacted extremely positively to this news, causing the token to rise by 8.07% in the last 24 hours. The number of MKR holders also grew during this period.
Source: Santimento