Cryptocurrencies come from projects that exist to fulfill a specific purpose, be it establishing a rewards system, upgraded decentralized services and entire payment networks. However, the scalability of these digital assets and how easy it is to solve challenges such as international payments makes them something else, especially when analyzing the advantages they give us over fiat currencies. That is the case with MAKER (MKR), a cryptocurrency project that seeks to stabilize the volatility of these digital assets by solving fixed supply and its speculative investments.
We are talking about a slightly different utility token. So for you to know what Maker is, we are going to start by analyzing the platform and then we will review the properties of its tokens.
What is the Maker platform?
Maker is a smart contract platform that wants to bring stability to the blockchain and crypto world. They have two tokens based on the Ethereum blockchain: Makercoin (MKR) and Dai (DAI).
- Makercoin is a volatile price token that is used to govern the Maker platform.
- Dai is a stablecoin suitable for payments, savings or guarantees that, as part of the smart contracts protocol (smart contracts) and MakerDAO products, gives access to DeFi’s ranging from savings instruments to loans.
The Maker platform tries to keep the value of Dai to one US dollar through external market mechanisms and economic incentives for this purpose.
One report provided evidence that the currency was backed by dollars. Regardless, Tether (another popular stablecoin) lacks transparency and is heavily tied to the Bitfinex exchange. Furthermore, it was allegedly used to manipulate the price of Bitcoin and altcoins in 2017.
Stable cryptocurrencies have made it possible for you to exchange Bitcoin or another altcoin for another with a non-fluctuating price. Offering a refuge in an ecosystem of drastic and unknown changes.
MakerDAO (MKR) is considered the utility and governance token for the Maker platform. It is used to facilitate the processes within the platform. For example, DAI token transaction costs are paid primarily with MKR tokens. The used tokens are burned after the transaction and fewer and fewer MKR tokens remain as a result. The more DAI is used, the rarer the MKR. Therefore its price is likely to increase. MKR does not have a stable price, it is simply based on supply and demand.
MKR is also used to pay the transaction costs of Collateralized Debt Positions (CDP). These CDPs are smart contracts that are used to generate DAI.
What is the Maker Team?
The Maker team is made up of programmers, economists and designers from around the world. They have grown rapidly in recent times and in total the team already has more than 50 members. They see themselves as a decentralized autonomous organization (DAO) where the holders of the tokens are the administration.
The main ones are the founder and CEO, Rune Christensen. Christensen studied international business at Copenhagen Business School and Biochemistry at the University of Copenhagen. And he’s the founder of Try China, a Chinese recruiting company.
The CTO is Andy Milenius who studied computer science at the University of Michigan, has experience as a Software Development Engineer at Amazon Web Services and as a Software Engineer at DappHub.
The director is Matt Richards. Richards studied technological and socioeconomic development at the University of Roskilde. He has experience as Director of Marketing at Audience Science, Director of Acquisition Marketing at Playdom (Disney), and as a cryptocurrency investor.
MakerDAO or DAI can be acquired in any cryptocurrency exchange that has a spot market, although you can also use future / perpetual contracts to trade with their stable value.