Maker, the Dai stablecoin issuer, has announced that it will launch a rebranded Dai token today, to help strengthen the stability of the token.
According to a blog post by the Maker Foundation today, the new type of Dai token dubbed Multi-Collateral Dai (MCD), will be backed by different types of collateral as opposed to its earlier launched Dai token that was backed by single collateral.
Maker urged users not to panic and assured that their old Dai tokens named Single-Collateral Dai (SCD) or SAI are still valuable while noting that developers are still monitoring the entire process and would brief users on the next line of action at the appropriate time.
As per the announcement, Maker is planning to drop support for the old Dai tokens in the next few months after the team has concluded their analysis, but the firm has promised to help users convert the SCD tokens into MCD.
In the meantime, Maker has promised to roll-out an app update for the Argent wallet in a few weeks after the launch of the MCD tokens, to help users convert the old Dai tokens to the rebranded Dai tokens using a one-tap process, the announcement notes.
The new Dai token has already started gaining support as Compound has assured that they will provide support for the MCD tokens.
To this end, once Compound launches support for the new Dai tokens, users will be required to withdraw their existing Dai tokens from the Compound platform into their Argent wallet, and convert to MCD tokens before moving the tokens back to Compound, Maker noted.
Although Compound has not given a date as to when it will roll-out support for the MCD tokens, users are guaranteed to earn interest from holding the Dai tokens on the Compound platform.
Meanwhile, Dai and Ethereum-backed stablecoin have continued to gain wide support from the community. Earlier this year, Coinfomania reported that Coinsource, a Texas-based Bitcoin ATM operator, had launched support for the Dai stablecoin.