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About Maker
Key Points:
- Maker (MKR) is the governance token of the MakerDAO and Maker Protocol.
- MKR tokens act as a kind of voting share for the organization that manages DAI.
- Maker is a project that operates DAI, a community-managed decentralized cryptocurrency with a stable value soft-pegged to the US dollar.
- Rune Christensen is the founder of MakerDAO.
- DAI is one of the most popular stablecoins with over $800 million in market capitalization.
- MKR’s unique proposition lies in the fact that it allows its holders to directly participate in the process of governing DAI.
- There is no hard-coded
About MakerDAO
Introducing Maker (MKR): A Pioneering DeFi Token
Maker (MKR) serves as the governance token for the decentralized organization, MakerDAO, and its accompanying software platform, Maker Protocol, both of which are built upon the Ethereum blockchain. This innovative ecosystem enables users to issue and manage the DAI stablecoin with ease.
Conceived in 2015 and formally launched in December 2017, the Maker project is dedicated to managing DAI, a decentralized cryptocurrency governed by its community, boasting a stable value softly pegged to the US dollar.
MKR tokens serve as a form of voting equity for the organization governing DAI, granting holders voting privileges over the development of the Maker Protocol, although they do not yield dividends. Instead, their value is anticipated to appreciate in tandem with the success of DAI.
The Maker ecosystem is a pioneering force in the decentralized finance (DeFi) landscape, a burgeoning industry dedicated to crafting decentralized financial products atop smart-contract-enabled blockchains, notably Ethereum.
The Visionaries Behind Maker: Unveiling the Founding Team
MakerDAO, the pioneering entity within the expansive Maker ecosystem, was founded in 2015 by Rune Christensen, a visionary entrepreneur hailing from Sealand, Denmark.
Rasmus Christensen holds a degree in biochemistry from Copenhagen University and pursued international business studies at the Copenhagen Business School. Before joining MakerDAO, he co-founded and led the Try China international recruitment firm.
Unveiling the Unparalleled Characteristics of Maker
As of October 2020, DAI has emerged as one of the most prominent stablecoins, a class of cryptocurrencies whose value is pegged to the US dollar or another traditional fiat currency. Notably, it has secured a position as the 25th largest cryptocurrency, boasting a substantial market capitalization of over $800 million, and remarkably, it has surpassed USDT, the largest stablecoin in the market, in terms of active addresses.
MKR’s unique value proposition stems from its ability to empower holders to directly participate in the governance of DAI. As a token holder, one has the right to cast votes on various proposed changes to the Maker Protocol, with voting power proportionate to the size of their MKR stake. The aspects of the protocol subject to holder votes include:
- Expanding the protocol’s collateral capabilities by introducing new asset types, thereby enabling users to mint additional DAI through the submission of novel cryptocurrencies;
- Revising the risk parameters associated with existing collateral asset types;
- Adjusting the DAI Savings Rate, which influences the profitability of the contract that rewards holders of DAI tokens with interest for locking their tokens;
- Selecting the oracles, trusted entities responsible for providing reliable, off-chain data to the Maker ecosystem;
- Implementing platform upgrades to ensure continued growth and improvement.
The capacity to participate in the governance of one of the largest stablecoins on the market is a key driver of demand for MKR tokens, which, in turn, has a profound impact on their value.
The Circulating Supply of Maker (MKR) Coins: A Closer Look
The issuance and removal of MKR from the system are orchestrated by a sophisticated framework of interconnected mechanisms, carefully designed to guarantee that DAI is perpetually over-collateralized by other cryptocurrency assets, thereby maintaining its soft peg to the USD. Notably, there is no hardcoded ceiling on the total supply of MKR.
DAI’s value is underpinned by collateral, comprising other cryptocurrencies deposited by users when minting new DAI tokens, which are subsequently stored in vaults – sophisticated smart contracts residing on the Ethereum blockchain.
During price downturns, the value of the cryptocurrency stored in the vault may become insufficient to fully collateralize the corresponding amount of DAI. In such an event, the Maker Protocol automatically triggers the liquidation of the vault’s contents, utilizing the proceeds to settle the outstanding obligations of that vault. If the amount of DAI generated during the liquidation process proves inadequate, the Maker Protocol mints additional MKR tokens, which are subsequently sold to cover the remaining deficit, thereby increasing the total supply.
However, in certain instances, the amount of DAI generated from the auctions surpasses the necessary threshold to ensure full collateralization — in such cases, the Maker Protocol utilizes the excess to repurchase and subsequently burn MKR tokens, thereby reducing their overall supply.
Thus, the supply of MKR is a dynamic value that fluctuates in response to shifting market conditions and the overall vitality of the DAI ecosystem. As of October 2020, the circulating supply of Maker tokens stands at approximately 1 million, boasting a valuation of over $500 million.
The Security Mechanisms Underpinning the Maker Network
MKR is an ERC-20 token, which operates on and derives its security from the Ethereum blockchain. Notably, Ethereum’s robust security is underpinned by its Ethash proof-of-work function.
Acquiring Maker (MKR): A Comprehensive Guide to Exchanges and Platforms
Maker token trading is accessible on prominent exchanges, including:
- The esteemed Binance
- Renowned OKEx
- Pioneering Uniswap
- Preeminent Coinbase Pro
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