Maker (MKR) — a cryptocurrency platform, built on top of Ethereum. The main goal - to create a line of decentralized virtual assets.
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Description of the Maker (MKR)
Initially conceived in 2015 and fully launched in December 2017, Maker is a project that aims to manage DAI, a decentralized, community-driven cryptocurrency with a stable value, pegged to the US dollar.
MKR tokens act as a sort of voting stake for the entity that manages DAI. While they do not pay dividends to their holders, they give holders a say in the development of the Maker Protocol and are expected to receive value in line with the success of DAI itself.
The Maker ecosystem is one of the earliest projects in the decentralized finance (DeFi) scene: an industry that seeks to build decentralized financial products on top of smart contract-enabled blockchains like Ethereum.
Distinctive features of the project
As of October 2020, DAI is one of the most popular stablecoins. It is the twenty-fifth largest cryptocurrency with a market capitalization of over $800 million and has more active addresses than USDT, the largest stablecoin on the market.
MKR's unique offering is as follows:
| 1 | Voting allows its holders to participate directly in the DAI governance process. Each Maker Token holder has the right to vote on a number of changes to the Maker Protocol, with their voting power, dependent on their share of MKR. |
| 2 | The main currency in the Maker system is MKR, the purpose of which - to attract financial injections. This coin also operates on the basis of the ERC20 protocol. The holders of this token are essentially the shareholders of the company, which functions as a decentralized organization. |
Owning shares in the Maker project is very profitable. In fact, the owners of tokens are the real power in the Maker system and can make major decisions, regarding the direction of development and improvement of the system, its activities and the distribution of the acquired profits. Some of the aspects of the protocol that owners can vote on are:
- adding new types of collateral assets to the protocol, allowing users to send new cryptocurrencies to mint more DAI;
- change the risk parameters of existing types of collateral assets;
- change the DAI savings rate;
- platform updates.
This ability to participate in the management of one of the largest stablecoins on the market is what drives the demand for MKR tokens and, accordingly, affects their value.
How to buy or sell a token?
The issuance and exclusion of MKR from the system is governed by a complex system of interdependent mechanisms, designed to ensure that DAI is always fully backed by other crypto assets and its soft pegging to the US dollar is maintained. There is no hard-coded cap on the total supply of MKR. Maker token trading is available on exchanges such as:
- Binance;
- OKEx;
- Uniswap;
- Coinbase Pro.
Maker coins cannot be mined. They were created primarily to attract maximum attention to the project and its activities, as well as to invest in the project. By means of coins, any user can buy a part of the site and participate in its activities and improvement directly.