Rune Christensen, the founder of MakerDAO, has provided further details on X about the design and implementation of their new stablecoin, PureDai. PureDai aims to be a fully decentralized stablecoin, featuring a floating target price and highly decentralized collateral.
Following the announcement of the new stablecoin directions under the Endgame Plan—NewStable and PureDai—Rune Christensen elaborated on PureDai’s design principles and implementation.
What is PureDai?
PureDai, according to Rune, is envisioned as an idealized version of Dai, sought after by many Maker community veterans (OGs) and broader Ethereum cyberpunk visionaries and idealists as a “truly decentralized” stablecoin. To achieve this goal, PureDai is designed uncompromisingly with the following features:
- Floating Target Price
- Decentralized Premium Collateral: Only highly decentralized and well-verified collateral such as ETH and STETH will be accepted. Additionally, PureDai will introduce a lending platform to maximize its supply.
- Highly Decentralized Oracles
- Minimal Governance: No budgets, no contributors.
- Permanent Position on Ethereum Mainnet: Layer 2 solutions and bridges maintained by the community.
- Simple Token Economics: To promote the growth of the stablecoin supply side.
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 floating target price. Since maintaining a long-term peg to the USD is not guaranteed, PureDai must achieve a free-floating anchor. When demand exceeds supply, it cannot use RWA (Real World Assets) on a large scale to lower the price.
To maintain price stability, Rune mentioned the need to introduce a negative target rate (meaning the cost of holding the stablecoin increases) to address the ongoing high demand exceeding supply. This would cause the target price to decline over time, theoretically maintaining some form of price stability without a fixed rate to any specific currency. This mechanism is similar to those used by decentralized stablecoins like RAI and HAI.
While existing Dai will remain pegged to the USD, users can choose to upgrade to PureDai to enjoy its high level of decentralization and resilience.
Initial Supply and Governance
- The initial supply will be distributed on the Ethereum mainnet through NewStable mining over five years.
- Permanently distributed to PureDai vault users to subsidize PureDai generation.
- PureDai’s surplus will accumulate governance tokens, which will be burned via the Smart Burn Engine.
- Governance tokens will act as a backstop in case of bad debt in PureDai.
- The initial supply of governance tokens will be allocated to NewStable users on the Ethereum mainnet, with 400 million tokens per year over five years (subject to adjustment). Rune believes this will incentivize the Maker community to develop and launch PureDai and ensure a broad distribution of governance token holders.
PureDai will not become a SubDAO, and its governance structure will be completely independent of Maker, with no perpetual token releases favoring Maker.
-
-
-
-
-
-
-
-
