The Maker platform allows its users to take out loans through its smart contract lending platform by locking-in in the place of DAi. MKR is the token used for governance on the Maker DAO, and maker protocol at large. Both of which are Ethereum based decentralized blockchain platforms in which the users are allowed the management and issuance of DAi stablecoins.
The MRK tokens on the Maker network acts as a decentralized voting share platform for the organization in charge of DAI management. While the holders of the tokens are not issued dividends for their participation, they are given voting rights over proposed development procedures on the Maker network. These voting rights issues are expected to grow in value based on the success levels of DAI itself.
Maker protocol is one of the first generation projects on the decentralized financial scene; an industry with the goal of building decentralized financial products in addition to providing a blockchain with smart contracts such as Ethereum.
Who are the Founders of Maker (MKR)?
Maker is one of the earliest projects to make it’s way to the Defi space with its earliest days starting in 2015 as an open-source platform that provided economic freedom to interested individuals anywhere in the world. The platform’s governance token MKR was launched officially in 2017, and the iteration of its first stable coin was known as Single Collateral Dai (SAI); a platform that made use of ether tokens as collateral.
In general, Maker is a provision of a community-managed cryptocurrency with a soft-pegged stable value in US dollars. After its official launch in 2017, two years later in 2019, there was a new release on the network known as Multi-Collateral Dai (DAI), which served as a replacement for the SAI protocol. Ever since the platform has experienced a major adoption rate and currently stands as the largest name in the decentralized lending industry with a $2.58 billion locked value as of December 2020.
The first creation inside the marker network, Marker DOA was created back in 2015, during its earliest days by Rune Christensen, a successful entrepreneur from Denmark.
Christensen is a product of Copenhagen University with a degree in biochemistry. He furthered his education by adding another degree in international business at the Copenhagen Business School. Before entering the Defi space, he was a manager and co-founder of the Try China international recruiting company.
What is Maker (MKR) used for?
The operation protocol of the maker system has two major functions. The first function is the governance of the network and the second function is recapitalization.
On the governance part, MKR token holders have the responsibility of monitoring, voting, and participating in protocol changes on the network to ensure its optimal operation. This process is executed through the use of smart contracts which could be proposal polling or executive polling.
The proposal polling is used in the weighing of the maker community consensus towards a proposed change in its operation. This is a preliminary stage executed to ensure that the proposals are well thought out before the actual voting on the network starts. After this, the holders of MKR tokens officially vote for the approval or disapproval of the proposed change. Whichever of the smart contract addresses that amassed the MKR tokens is chosen as the active proposal.
Some of the network changes that have been proposed or executed include the addition of a new collateral asset, the modification of the DAi Savings Rate (DSR), the choice of a new set of oracle feeds.
The second use of the MKR token is the recapitalization function. This comes to light in a case where there is a current debt on the system which surpasses the surplus. If this happens, there is a minting of new tokens by the protocol, which are then sold for DAi via the debt auction to provide insolvency back on the platform.
What Is the Unique Point of Maker (MKR)?
The year 2020 witnesses several coin boosts in the cryptocurrency space. One of these was DAI which was one of the most popular stablecoins available during that period. It was marked as the 25th largest cryptocurrency with a market capitalization of over $800 million and more active addresses than the USDT network.
The most unique selling point of the Maker network is in allowing its currency holders to participate actively in its governance process. Every participant on the network that holds MKR tokens is allowed the opportunity to vote for changes on the platform depending on their stake.
Although there are several aspects across the network where the power of these voting participation comes into existence, some of the major points include the addition of new collateral asset types to the network, modification of the risk parameters of the available collateral types, and general upgrades to the platform among other things.
A major driving force that has constantly promoted the adoption of the MKR stable coin in the open market is the opportunity for its holders to participate in its management.
How many Maker (MKR) coins are in circulation?
The protocol responsible for the addition and removal of Maker tokens is a complex series of independent mechanisms designed to ensure constant collateralization of DAI by other cryptocurrency assets and the maintenance of its soft pegging to the US dollars. Thus, there is no existence of a hard-coded limit to the supply of MKR tokens.
The value of DAI is collateral, a system secured by the depositing of other cryptocurrencies by users when minting new DAI tokens and stored in smart contacts via the Ethereum blockchain.
In some cases, mostly during price downswings, the value of stored cryptocurrency might be unable to allow for the full collateralizing of the equivalent amount of DAI. In such cases, the operation protocol on the maker system initiates a full liquidation of the contents of the vault. The proceeds from this operation are then used to cover the vault’s obligations. If this does not offset the amount, the protocol mints and sells new tokens to cover the leftovers.
Is the Maker (MKR) Network secured?
MKR, the maker native token, operates under the ERC-20 compatibility specifications and has its security protocols based on the Ethereum network. This implies that the security measure available on the platform is a proof-of-work system, similar to the Ethereum network.
The proof-of-work security protocol is a consensus mechanism in which long chains of block transactions are accepted as valid. This rule protects the system by preventing multiple chains, with each reflecting a different historical build, while existing side-by-side.
How do I buy Maker (MKR)?
The Maker network is one of the fastest-growing cryptocurrencies because of its collateral provisions. This implies a steady availability across a series of exchange platforms. To buy an MRK token, follow the steps below.
* Open an account with any crypto trading platform that offers MRK.
* Transfer the specific amount of your fiat currency to the trading platform account.
* Wait for your deposit to be confirmed and Buy MRK through the trading platform account.
Which Cryptocurrency Wallet Supports Maker (MKR)?
The PTPWallet platform supports many cryptocurrencies simultaneously, such as MRK tokens. Because of its speed, flexibility, and unique features, it has grown to become one of the most used new platforms. In addition, users can easily use PTPWallet as their main Maker (MRK) wallet as it offers a simple and interactive interface, making it easy to navigate its system.