MakerDAO, a pioneering force in the decentralized finance (DeFi) space, is preparing to launch two transformative tokens: NewStable (NST) and NewGovToken (NGT). These upcoming additions represent a strategic evolution of the Maker ecosystem, designed to boost adoption, strengthen stability, and deepen community governance—without replacing the existing DAI and MKR tokens.
This major upgrade aligns with MakerDAO’s long-term Endgame vision, aiming to position it as the most widely used and scalable stablecoin platform within three years. Let’s explore how NST and NGT will reshape the future of decentralized finance.
What Is NewStable (NST)? The Next-Gen Evolution of DAI
NewStable (NST) is not a replacement but an advanced iteration of the popular DAI stablecoin. Engineered for broader mainstream adoption, NST introduces enhanced mechanisms to maintain price stability even under volatile market conditions.
Both new users and current DAI holders can seamlessly participate in the NST ecosystem. Crucially, DAI holders will be able to upgrade their holdings to NST at any time—and convert back if needed—ensuring full flexibility and user control.
Key Features of NST:
- Built-in liquidity mining: From day one, NST holders can earn NGT tokens through liquidity mining programs.
- Annual NGT rewards: A total of 600 million NGT tokens will be distributed annually to active NST participants.
- Seamless interoperability: NST operates alongside DAI, allowing users to switch between both versions based on preference or use case.
This dual-token model ensures continuity while enabling innovation—existing applications relying on DAI remain unaffected, while new DeFi integrations can leverage NST’s upgraded features.
Introducing NewGovToken (NGT): Democratizing Decentralized Governance
To foster more inclusive and dynamic decision-making, MakerDAO is introducing NewGovToken (NGT) as a complementary governance token to MKR. While MKR remains central to protocol risk management and collateral oversight, NGT is designed to broaden participation across the community.
MKR holders can choose to upgrade their tokens into NGT at a fixed rate:
1 MKR = 24,000 NGT.
The conversion works both ways—users can swap NGT back into MKR whenever desired. This bidirectional flexibility empowers stakeholders to engage in governance without sacrificing long-term value.
By significantly increasing the total supply of governance-capable tokens, MakerDAO aims to lower the barrier to entry for everyday users. More people holding NGT means more decentralized voting power, reducing concentration risks and promoting fairer outcomes.
The Role of Lockstake in Long-Term Engagement
A core innovation supporting NGT is the Lockstake engine, a mechanism that incentivizes long-term commitment. Users who lock their MKR or NGT tokens gain enhanced governance influence and increased reward potential.
Lockstake encourages users to think beyond short-term gains, aligning individual incentives with the long-term health of the protocol. Those who stake longer earn greater voting weight and a larger share of protocol-generated revenues.
This creates a self-reinforcing cycle: committed stakeholders drive better governance, which improves system resilience, attracting more users and capital.
MakerDAO’s Endgame Plan: Building a Scalable, SubDAO-Powered Future
At the heart of this transformation lies Rune Christensen’s Endgame roadmap, a bold five-phase strategy to restructure MakerDAO into a leaner, more resilient, and highly scalable organization.
The ultimate goal? To become the world’s most adopted stablecoin platform within three years—surpassing even centralized alternatives in utility and reach.
The Five Stages of Endgame:
- Beta Launch – Initial rollout of NST and NGT with real-world testing.
- SubDAO Activation – Launch of independent subDAOs focused on specific verticals like lending, insurance, or cross-chain bridges.
- AI-Powered Governance Tools – Integration of AI assistants to streamline proposal analysis and voter education.
- Governance Participation Rewards – Direct incentives for voting, discussion, and contribution.
- NewChain Deployment – Migration to a purpose-built blockchain (potentially built on Solana), separating from Ethereum to achieve higher throughput and lower fees.
Each phase builds upon the last, creating a modular, adaptable ecosystem capable of rapid innovation.
Empowering Innovation Through SubDAOs
One of the most exciting elements of MakerDAO’s future is the launch of subDAOs—autonomous units spun off from the main DAO to focus on specialized functions.
These subDAOs will operate independently but remain aligned with Maker’s core values and treasury. Crucially, ordinary NST holders will be able to mine subDAO-specific tokens for free, giving them skin in the game without upfront costs.
Imagine a subDAO dedicated to real-world asset (RWA) financing or another focused on privacy-preserving transactions. Each can innovate freely, launch products, generate revenue, and contribute back to the broader ecosystem—all governed by its own community of NGT and NST stakeholders.
This fractal structure prevents bloat in the central DAO and allows targeted experimentation, accelerating development across multiple fronts simultaneously.
👉 See how decentralized communities are unlocking new economic models through tokenized participation.
Frequently Asked Questions (FAQ)
Q: Will NST replace DAI?
A: No. NST is an upgraded version of DAI but will coexist with it. Users can freely convert between DAI and NST based on their needs.
Q: Can I convert NGT back into MKR?
A: Yes. The conversion is fully reversible—1 MKR equals 24,000 NGT, and you can swap NGT back into MKR at any time.
Q: How do I earn NGT tokens?
A: You can earn NGT by providing liquidity with NST or by participating in governance via the Lockstake engine.
Q: Are there restrictions on earning rewards?
A: Yes. U.S. residents and users accessing the network via VPN are currently ineligible for liquidity mining rewards due to regulatory compliance requirements.
Q: What is the purpose of Lockstake?
A: Lockstake incentivizes long-term governance participation by allowing users to lock MKR or NGT for increased voting power and higher reward yields.
Q: When will subDAO mining begin?
A: SubDAO token mining is expected to launch in Q2 2025, enabling NST holders to start earning subDAO-specific tokens.
Looking Ahead: A New Era for Decentralized Finance
MakerDAO’s introduction of NST, NGT, Lockstake, and subDAOs marks a pivotal shift in how decentralized organizations scale and evolve. Rather than growing into a monolithic entity, Maker is choosing a path of modular expansion—decentralizing not just governance, but innovation itself.
With stronger stability mechanisms, broader participation models, and a clear roadmap toward autonomous growth, MakerDAO is laying the foundation for sustainable success in the next era of Web3.
As these upgrades roll out, they offer a compelling blueprint for other protocols aiming to balance decentralization with scalability.