Rune Christensen, CEO and co-founder of MakerDAO, announced plans for dual stablecoins, PureDai and NewStable in a recent post on X, which aims to replace the current stablecoin DAI. This move is described as a "return to the ideological roots of DAI," highlighting increased decentralization.

What is PureDai?

PureDai is an upcoming stablecoin from MakerDAO that will be designed to operate exclusively on the Ethereum mainnet. Unlike its predecessor, DAI, which relies on a mix of centralized and decentralized collateral, PureDai will use only decentralized assets like Ethereum (ETH) and staked Ether (stETH) as collateral. 

This shift aims to enhance the stability and trustworthiness of the ecosystem by eliminating centralized dependencies.

A notable feature of PureDai is its reliance on decentralized oracles for price feeds, ensuring that no single entity can manipulate its value. 

Additionally, PureDai will have a free-floating peg, meaning it may not be directly tied to the US dollar. This approach allows for a more decentralized and resilient stablecoin, catering to users who prioritize decentralization over fiat stability.

According to the MakerDAO co-founder, PureDai will be released in its final, immutable form after a few years.

Once PureDai is available, DAI holders will have the option to upgrade to this new stablecoin. Christensen stated that this transition aligns with MakerDAO’s commitment to decentralization. 

The existing DAI will eventually phase out as users migrate to either PureDai or another new stablecoin, NewStable.

Introducing NewStable

NewStable is another upcoming stablecoin from MakerDAO, designed to be a straightforward upgrade to the current DAI. 

With a focus on growth, yield, and resilience, NewStable will be the primary successor to DAI. Rune said the decentralized stablecoin would be created with utility and adoption in mind.

“Most Dai use cases will be succeeded by NewStable, which will focus on mass market adoption and regulatorily compliant Real-World Asset (RWA) backing, with decentralization used as a powerful tool to ensure transparency, resilience, and checks and balances,” Rune Christensen said.

Furthermore, NewStable will incorporate a freeze function similar to those found in other major stablecoins backed by RWA. 

Unlike PureDai, NewStable will maintain a traditional USD peg and comply with regulatory requirements concerning real-world assets. 

This dual-path strategy will reportedly offer users a choice between complete decentralization with PureDai or a regulated, fiat-pegged option with NewStable.

Christensen expects that, over several years, all users and integrations will transition to either PureDai or NewStable. The original DAI will be fully deprecated once this migration is complete. 

Impact on MKR and Governance

In addition to the changes to DAI, Christensen provided insights into the future of MKR, MakerDAO’s governance token. 

MKR holders will have the opportunity to upgrade to a new governance token, NewGovToken, at a ratio of 1:24,000. This transition aims to align the governance structure with the new stablecoin projects and ensure continued community involvement.