Maker (MKR) is a cryptocurrency platform in the Ethereum blockchain that sells Dai tokens and seeks to minimize their volatility. This smart contract platform stabilizes the value of the Dai bond through the Collateralized Dept Positions (CDP) platform. The Dai bond is exchanged at a value of one dollar; this brings out its stability feature with several variabilities such as the external market mechanisms and economic incentives. Thus, Dai is on the verge of being the most stable cryptocurrency.
These coins have a stable nature. Thus, they are very useful in some financial markets in the economy such as gambling, international trade, transparent accounting systems and the general financial markets. Hence, there is a great reduction of the huge value fluctuations by mitigating the market risk of crypto-assets as compared to all the other existing cryptocurrencies. Therefore, Dai is less volatile and so, easier for long-term financial planning.
History of Maker (MKR)
Maker became the first tradable token on the Ethereum network in August 2015 and thereafter the Maker platform was launched in April 2016. Before their platform was released, funds were being issued through the exchange of Bitcoins and Ethereum for MKR tokens. In December 2017, the Maker network made a breakthrough; it created an asset linked to the US dollar with a stable exchange rate of 1 for 1. This is the Dai token.
How does Maker (MKR) work
In order to access the Maker System, a CDP is created. Once the debt is paid off, the user gets the total control over Dai. This also takes place when a client converts his or her Ethereum coins to the Pooled Ether (PETH). This process has four parts:
Creation of the CDP
Withdrawing the collateral
This platform operates with the principles of the Digitally Autonomous Organization (DAO) which simply means that the platform uses artificial intelligence to control the Makers ability to regulate itself and stabilizing Dai. However, the incorporation of human intelligence also plays a major role in this; the token holders hold meetings on formulating actions and implementations for the network.
How to Buy MKR and Dai Tokens
Dai can be generated by anyone as the platform has accessibility to anyone who can deposit a collateral asset into the system in exchange for Dai. Then, the assets are accessible and available to the holder once the debt has been paid off; this includes a proportional fee required in the stabilization of Dai. The Maker token can be accessed through the Ethereum blockchain where one is required to buy either Bitcoin or Ethereum from platforms such as Coinbase and exchange them for Maker. The Maker tokens can thus be stored in the MEW. MEW can be used to hold any token from the Ethereum blockchain. The Dai and MKR tokens are currently available through the Oasis Decentralized Exchange (OasisDex) which is accessible through an Ethereum browser.
The total supply of MKR in the market is 1 million where the available tokens in circulation are about 618,000. This implies that a 61% of the total supply of MKR is in circulation trading where 15% is held by the core members.
Maker was introduced in 2015, more than two years ago by the founder Rune Christensen, a graduate of Københavns Universitet in Denmark with a degree in Biochemistry. The team has greatly grown within the years to a team of about 35 members with its newest member being Søren Peter Nielsen, a Software Scientist, holding the position of the Head of Product from January 2018.
The Maker is poised to be the first smart cryptocurrency as it aims for stabilization and growth. Therefore, this means that the future application of financial activities using the digital currency is on the verge of being possible with the stability of Dai making Maker and Dai the best currency to hold.