MakerDAO, the decentralized autonomous organization behind the Dai stablecoin, has announced plans to introduce a new stablecoin named PureDai.
This move, expected to materialize in a few years, aims to offer a fully decentralized alternative to Dai, which currently relies on a mix of decentralized and centralized collateral.
Transitioning to Pure Decentralization
Rune Christensen, CEO and co-founder of MakerDAO, outlined the vision for PureDai. Unlike Dai, backed by various assets, including centralized ones like USDC, PureDai will exclusively use decentralized assets such as Ethereum (ETH) and Lido-staked Ether (stETH) as collateral.
PureDai will operate solely on Ethereum’s mainnet. It leverages decentralized oracles for price feeds to prevent any single entity from manipulating its value. It will have a free-floating peg, meaning it might not be tied directly to the US dollar.
This design choice aims to enhance decentralization and resilience, catering to users prioritizing these principles over fiat-backed stability.
“Dai users in the future will have the option of upgrading their Dai to PureDai, which is a return to the ideological roots of Dai,” Christensen stated.
Read more: Dai (DAI) Cryptocurrency: A Beginner’s Guide
Upon its release, PureDai will not require further upgrades or changes. It will be an immutable system, maintaining its fully decentralized nature without a permanent connection to MakerDAO. Dai holders can upgrade to PureDai, ensuring a smooth transition for those seeking pure decentralization.
In addition to PureDai, MakerDAO plans to launch NewStable, another stablecoin designed to succeed Dai. NewStable will focus on growth, yield, and resilience while maintaining a traditional USD peg. It also complies with regulatory requirements concerning real-world assets (RWA).
Unlike PureDai, NewStable will integrate with conventional finance systems, making it more suitable for mass-market adoption.
“Most Dai use cases will be succeeded by NewStable, which will focus on mass market adoption and regulatory compliant Real-World Asset backing,” said Christensen.
The dual-path strategy of introducing PureDai and NewStable offers users a choice between complete decentralization and a regulated, fiat-pegged option. Over several years, MakerDAO anticipates that all users and integrations will transition to PureDai or NewStable.
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