Rune Christensen, founder of MakerDAO, has proposed a unique solution to the Stablecoin Trilemma, which suggests that it's impossible to simultaneously achieve a stable value pegged to the dollar, maintain decentralization, and scale to meet demand.

Christensen's approach involves creating a dual stablecoin system, transitioning Maker's DAI stablecoin into two new entities: NewStable and PureDAI. These stablecoins aim to balance utility, scalability, dollar pegging, and decentralization.

Once the ecosystem fully implements and adopts these new stablecoins, DAI will be phased out, though the timeline will depend on how quickly the community adapts.

NewStable will replace DAI as the primary stablecoin, focusing on growth, yield, and resilience. It is designed for mass market adoption and regulatory compliance, backed by Real-World Assets (RWA). Christensen states that decentralization will ensure transparency and checks and balances. NewStable will feature a freeze function to comply with legal standards in important jurisdictions, enhancing security and stability.

PureDAI, in contrast, will be entirely autonomous, using only decentralized collateral like ETH and stETH, with a free-floating peg and maximally decentralized oracles. It will have no governance or budgets, aiming to eliminate all ties to Maker. Christensen notes that PureDAI will be available after a few years, with users able to transition from DAI to PureDAI through Maker frontends. Initially exclusive to the Ethereum mainnet, it may expand via layer-2 solutions and cross-chain bridges.