Rune Christensen, the founder of MakerDAO, has proposed a novel solution to the Stablecoin Trilemma.This trilemma posits that achieving a stable value pegged to the dollar, maintaining decentralization, and scaling to meet demand are mutually exclusive goals.Christensen’s solution involves a dual stablecoin framework, envisioning the evolution of Maker’s DAI stablecoin into two distinct entities—NewStable and PureDAI. These stablecoins will address critical aspects of the trilemma by prioritizing utility and scalability while ensuring a dollar peg and upholding pure decentralization.According to Christensen, DAI will be fully deprecated once the ecosystem implements and adopts these solutions. However, the timeline for this transition depends on the community’s adoption speed.NewStable will be the primary successor to DAI, prioritizing growth, yield, and resilience. The decentralized stablecoin would be crafted with utility and adoption in mind.According to Christensen:“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.”The stablecoin will maintain a relationship with Maker and inherit Endgame’s tokenomics, growth focus, and governance framework.Additionally, NewStable incorporates a freeze function akin to industry standards seen in other major RWA-backed stablecoins. Implementing the freeze function is anticipated to adhere to the rule of law in jurisdictions crucial for Maker’s legal recourse against RWA collateral.This approach enhances security, stability, and reliability, bolstering NewStable’s global mass market adoption potential.On the other hand, PureDAI aims for total autonomy, distancing itself from centralized influence by relying on decentralized collateral.Christensen explained:“PureDai will feature only purely decentralized collateral such as ETH and stETH, free-floating peg like Rai, maximally decentralized oracles and no governance or budgets.”He said this stablecoin would become available after “a few years” and would cut all enduring ties to Maker at launch.Upon release, DAI users can seamlessly transition to PureDAI through Maker frontends. However, it would be exclusive to the Ethereum mainnet and may expand its reach through layer-2 solutions and bridges supporting cross-chain transport.Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.Also known as “Akiba,” Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change. Get the latest crypto news and expert insights. Delivered to you daily.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
