About the coin

MKR is a cryptocurrency depicted as a smart contract platform that works alongside the Dai coin. It aims to act as a hedge currency, providing traders with a stable alternative to the majority of coins currently available on the market. Maker offers a transparent stablecoin system that is fully inspectable on the Ethereum blockchain. Founded by Rune Christensen, MakerDAO is a relatively recent entrant to the market, gaining prominence during recent peaks and troughs.

Main features

After being developed by the MakerDAO team, Maker Dai officially went live on December 18th, 2017. Dai is a price-stable coin suitable for payments, savings, or collateral, providing cryptocurrency traders with increased options for opening and closing positions. Dai operates entirely on the blockchain, with its stability unmediated by the legal system or trusted counterparties, facilitating trading while remaining within the cryptocurrency ecosystem. The concept of a stablecoin is straightforward: it is a token pegged to a particular fiat currency, offering stability unlike volatile cryptocurrencies like Bitcoin or Ethereum.

How it works

MKR is an ERC-20 token on the Ethereum blockchain and cannot be mined. It is created or destroyed in response to DAI price fluctuations to maintain its value around $1 USD. MKR is used to pay transaction fees on the Maker system and collateralizes the system. Holding MKR grants voting rights within Maker's continuous approval voting system. Bad governance devalues MKR tokens, incentivizing holders to vote for the system's overall benefit. This decentralized and democratic structure is an underutilized unique selling proposition of blockchain technology.