DAGS + SDAG

The Transition to a Two-Token Model: DAGS and SDAG

At the beginning of 2025, a strategic decision was made to transition towards a dual-token model. This approach was designed to accommodate the interests of both holders looking for price appreciation and users who were committed to the original vision of DAGS as a medium of exchange. The introduction of a two-coin system allows the project to align with the needs of both these groups without compromising the core technological advancements that had been developed over the years.

Under this new model, the existing token has now transitioned into a deflationary asset, designed to reward early adopters and long-term holders through mechanisms that systematically reduce the supply, thereby increasing scarcity and fostering price appreciation. Various burning mechanisms, including transaction-based burns, scheduled supply reductions, and utility-based burns, ensure that the tokenomics support long-term value growth, making it an attractive store of value. This deflationary structure ensures that every transaction contributes to decreasing the circulating supply, strengthening the incentive for holders to keep their tokens rather than spend them.

At the same time, to uphold the original mission of creating a cryptocurrency that is practical for daily transactions, the team is launching SDAG, a stablecoin that is built on the same advanced DAG technology. This new stablecoin provides the same benefits of scalability, fast transaction speeds, and low-cost transfers, but with the crucial advantage of price stability. The introduction of SDAG allows the project to refocus efforts on usability and merchant adoption, ensuring that those who initially joined the ecosystem for its vision of practical cryptocurrency applications now have an optimized solution. Unlike the deflationary coin, SDAG is specifically designed for seamless everyday use, making it an ideal choice for merchants and consumers alike who need consistency in pricing for transactions. The stability of SDAG ensures that businesses and individuals can transact with confidence, eliminating the risks associated with fluctuating asset prices.

This dual-token approach offers a win-win solution by enabling long-term investors and early adopters to benefit from price appreciation through the deflationary token while allowing merchants and everyday users to engage with a stable, scalable, and efficient digital currency. Both tokens leverage the same underlying DAG technology, maintaining efficiency and transaction speed while allowing the ecosystem to expand in two different directions. Usability-focused adoption becomes significantly easier with the introduction of SDAG, as stablecoins are the dominant form of cryptocurrency used in real-world transactions. By implementing this model, the project ensures that it remains adaptable to market conditions while staying true to its founding principles. The transition to a two-coin system strengthens the ecosystem by making it more inclusive, providing something of value for both speculative investors and practical users alike.

Moving forward, the project is fully committed to developing and promoting both assets. The deflationary coin continues to be in circulation, benefiting from ongoing burn mechanisms that enhance its scarcity and value proposition. Meanwhile, SDAG is set to launch soon, paving the way for broader adoption through strategic partnerships and integrations with merchants, businesses, and DeFi platforms. This new phase marks a significant milestone in the evolution of DAGS, solidifying its position as both a store of value and a practical means of exchange in the cryptocurrency space. By addressing the shortcomings of volatility while maintaining technological superiority, the two-coin system ensures that the ecosystem remains robust, scalable, and future-proof. This is not just an adjustment to tokenomics, but a fundamental shift in how the project approaches usability, adoption, and long-term sustainability and value creation.