A Comprehensive Understanding of the New Stablecoin PureDai Launched by MakerDAO
PureDai aims to be a fully decentralized stablecoin, featuring a floating target price and highly decentralized collateral, among other characteristics.Original Author: BlockTempo
MakerDAO founder Rune Christensen further introduced the design and implementation details of its new stablecoin PureDai on X. PureDai aims to be a fully decentralized stablecoin, featuring floating target prices and highly decentralized collateral.
After releasing new stablecoin plans for NewStable and PureDai in different directions as part of the Endgame plan yesterday, MakerDAO founder Rune Christensen today elaborated on the ideas and principles behind the design and implementation of PureDai on X.
BlockTempo reported on the details of NewStable (NST) on the 4th, which will serve as an upgraded version of Dai, thus still focusing on stability pegged to the US dollar, using RWA as reserve assets, allowing Dai holders to choose whether to upgrade to NST.
What is PureDai?
Returning to PureDai, Rune stated that its goal is to realize an idealized Dai, which is a "truly decentralized" stablecoin long desired by many OGs in the Maker community and the broader Ethereum cyberpunk vision and idealists.
To achieve this goal, Rune designed PureDai in an uncompromising manner, featuring the following characteristics:
1. Floating target price
2. Decentralized high-quality collateral: Only accepting highly decentralized and thoroughly verified collateral (such as ETH, STETH). Additionally, PureDai will launch a lending platform to maximize the supply of PureDai.
3. Highly decentralized oracle
4. Minimal governance: No budget, no contributors.
5. Permanently positioned on the Ethereum mainnet: Layer 2 solutions and bridges maintained by the community.
6. Simple token economics: Promoting growth on the supply side of the stablecoin.
Moreover, the name PureDai is currently tentative and will be finalized based on community and future user feedback.
Floating Target Price
The most important feature of PureDai is its ability to achieve a floating target price. Since there is no guarantee of long-term pegging to the US dollar, PureDai must achieve free-floating anchoring, as RWA (real-world assets) cannot be used on a large scale to lower prices in situations of high demand.
To maintain price stability, Rune pointed out the need to introduce negative target interest rates (meaning the cost of holding the stablecoin will increase) to address the situation where sustained high demand exceeds supply. This will cause the target price to decline over time, theoretically maintaining some form of price stability, but it does not guarantee a fixed ratio with any specific currency. This is the mechanism adopted by decentralized stablecoins like RAI and HAI.
Rune stated that while the existing Dai will remain pegged to the US dollar, users can choose to upgrade to PureDai to enjoy its extreme decentralization and resilience.
PureDai Governance Token Economics
Just as NewStable has its own governance token (code-named NewGovToken, NGT), PureDai will also have its own governance token (PureDai Governance Token), which has the following characteristics:
Initial supply of 2 billion
The initial supply will be distributed through NewStable mining on the Ethereum mainnet over five years.
Permanently distributed to PureDai vault users to subsidize the generation of PureDai.
The surplus of PureDai will be used to accumulate governance tokens, achieved through burning (Smart Burn Engine).
The governance token acts as a backup in case of bad debts in PureDai.
The initial supply of PureDai's governance token will be allocated to NewStable users on the Ethereum mainnet, with 400 million tokens per year for five years (subject to adjustment). Rune stated that this helps incentivize the Maker community to develop and launch PureDai and ensures a broad distribution of governance token ownership. PureDai will not become a SubDAO, and its governance structure will be completely independent of Maker, with no permanent token releases beneficial to Maker.
