Maker (MKR), a decentralized finance (DeFi) project, is a smart contract platform used to stabilize the price of the DAI token pegged to the US dollar.
By allowing users to create and manage the DAI coin, Maker functions as the governance token of MakerDAO, Ethereum’s blockchain-based decentralized autonomous organization (DAO), and the Maker Protocol software platform.
Designed in 2015 and launched in 2017, Maker enables the community managed decentralized cryptocurrency DAI token to work.
MKR tokens work for those who have a say in managing the DAI token to vote. Token holders do not receive dividends from the system, but have the right to vote on the development of the protocol.
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While producing DAI, MKR is used and processed MKR is burned. Thanks to the decrease in the number of tokens, the more demand for the DAI coin, the more the Creator gets its share of this demand.
The Maker ecosystem is one of the oldest projects in the DeFi ecosystem that aims to build decentralized financial products on blockchain networks of smart contracts like Ethereum.
What makes Network Maker different?
One of the characteristics that distinguishes the MKR project is the direct participation of token holders in the DAI management process. MKR holders have the right to vote based on the amount of savings they have. Your opinion is requested to make changes to the protocol.
Users can vote on areas such as the amount of DAI to be generated and the addition of new types of collateral assets to the protocol. They may also decide to change the risk parameters of the assets traded as collateral.
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DAI token holders can save by locking their tokens. They can also leverage the Oracle system to add non-network data to the Maker ecosystem. Participants can also vote for future updates to the platform.
The source of the demand for the MKR token is interpreted as the power to participate in the management of one of the largest stablecoins on the market. This power is also reflected in its value.
MKR Coin Supply
The total supply of MKR is not fixed. The creation and recording of the Token Maker is managed by a standalone software that runs on its own, as the DAI price is always equal to $ 1. Smart Escrow Vaults that run on the Ethereum blockchain are being upgraded to keep the DAI price stable.
DAI warranties are updated according to price changes. If the quantity of DAI produced is not enough, Maker Protocol generates new MKR tokens to sell and limits the remaining quantity. Therefore, the total supply increases.
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Sometimes the amount of DAI obtained from the sale may exceed the coverage limit. If such a situation occurs, the MKR tokens are bought back and burned by the Maker Protocol. Therefore, the total supply decreases.
In short, the MKR offering is a dynamic number that is updated based on market conditions and the DAI ecosystem.
How is the Maker network protected?
The MKR token has ERC-20 standards and runs on the Ethereum blockchain network. Ethereum is protected by a Proof of Work (PoW) consensus algorithm called Ethash. In the near future, the Ethereum network will switch to the Proof of Stake (PoS) algorithm.
Where to buy MKR?
Based on CoinMarketCap data, the crypto exchanges with the majority of Maker’s transactions appear to be BKEX, Binance, OKEx, and Coinbase. Cryptocurrency exchanges that trade against the Turkish lira include BtcTurk, Paribu, and BitTurk.
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