These are the new tokens that MakerDAO is launching.

MakerDAO founder Rune Christensen has confirmed that MakerDAO will begin Phase 1 of its “Endgame” plan in summer 2024.

MakerDAO's Endgame Phase 1 will lay the groundwork for the Decentralized Autonomous Organization (DAO) structural reforms by introducing the new tokens.

MakerDAO Evolution: New Tokens

The new tokens, named NewStable and NewGov Token, will offer users participation and investment options in the ecosystem. They are the second stage in MakerDAO's plan, which starts with branding and ends with improved stock and farming opportunities.

MakerDAO has found success with its MKR management token and DAI stablecoin. The value of DAI will remain at $1 with a mechanism that adjusts the fee for borrowing DAI based on the number of tokens in circulation. Users must deposit a certain amount of ETH in Creator Vault to receive the number of tokens determined by the stabilization algorithm.

In an Endgame scenario, DAI provides crypto-native use cases, while Newstable targets broader adoption scenarios. The Lock Engine (LSE) extends the protocol's governance mechanisms and promotes participation in the ecosystem through crypto staking. And, a new low-cost bridge will improve blockchain interoperability.

Read more: Dai (DAI) Cryptocurrency: A Beginner's Guide

Following the launch of Spark Lend, MakerDAO will also launch a SubDAO called SparkDAO, designed to access real-world assets and perpetual exchange products. The development of sub-DAOs will improve the scale of MakerDAO pending a new Layer-1 blockchain.

SubDAOs also allow for sustainable product farming opportunities and enhanced user engagement through Tokinomics.

The ups and downs of the final game

Following years of preparation by the MakerDAO community on technology, legal frameworks and community building, the Endgame plan was approved by a blockchain vote in August 2022. Part 1 takes a structural update ten years after Christensen conceived MakerDAO.

Maker's DAI stablecoin is among the first algorithmic stablecoin variants to sustain the US dollar through financial engineering. However, the project is threatened by the broader crypto markets.

Users need to deposit ETH to receive DAI without a fixed term loan. However, an unfavorable market with a falling ETH price could cause DAI loans to become sub-collateralized and create a flood of liquidity, as happened in 2020.

The disbursements totaled around $5.7 million as of March 16, 2020, drawing attention to the need for better crisis management. MakerDAO didn't reveal in the Endgame launch post how the new governance tokens will overcome past failures, but Christensen did point out the importance of moving quickly in a bull market.

“It's important to make some changes in the bootstrapping process because we're going through not only the event to get started, but the bull market that's going on,” Christensen wrote.

Read More: Maker (MKR) Price Forecast 2023/2025/2030

Following the approval of the endgame proposal, MakerDAO's Sébastien Derivaux questioned the authenticity of the MakerDAO Endgame vote. Christensen said 60% of voting addresses were affected.