Maker coin is the utility token which provides functionality to the Maker platform and works aboard its Dai stablecoin. Its independent tasks include providing vote rights and enabling the payment of fees and matter to on the platform .
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What Is Maker Coin
The Maker coin ( MKR ) is the cryptocurrency whole native to the Maker platform. It operates alongside another coin which exists on the lapp platform – Dai, which is a decentralized stablecoin based on the Ethereum blockchain. The Dai coin went live in December 2017 as the consequence of a collective attempt of a group of 35 persons working under the steering of Rune Christensen. Dai aims to correct the issues relating to the volatility of regular cryptocurrencies which prevents them from becoming mainstream means of requital. alternatively of unpredictable value fluctuations which can change on day by day footing, Dai coin offers constancy relative to the US dollar ( 1 USD for 1 Dai ) and is backed by collaterals .
At the same time, Dai coin serves to bring broader access to fiscal services to its users across the ball. This includes access to a credit system built around the principle of easy and fair access, stable loans and the miss of local restrictions. To make all of this possible, Maker coin works in the setting as a utility token that ensures the proper operation of both the platform itself and the Dai stablecoin.
Maker Coin Price
The monetary value of the Maker coin is changeable, unlike that of its Dai “ buddy, ” whose monetary value does not fluctuate and is freelancer of backing by any asset-holding institutions such as banks. While its immediate competitors such as Tether are backed by the decree currentness held in depository financial institution reserves, Dai is backed by the system running based on ache contracts. This means leaving full moon command in the hands of users who can well transfer their Dai coins across the earth and send it to their wallets. The Maker platform besides aims to establish itself as a stable platform for dapps ( decentralized apps ) with higher resistance to price fluctuations .
Maker Coin Use Case
Maker coins serve as administration tokens which guarantee their owners the right to vote on any important decision related to the platform. These include risk management, payment of Dai loans or setting the debt ratio. If one wants to take the lend in Dai, the Maker mint is used for the payment of relate 1 % interest rate.
The MKR coins besides operate as the utility tokens used for the payment of the fees relating to the collateralize debt put ( CDP ) mechanism which allows for the generation of Dai. With the payment of fees, the MKR coins are removed from the supply, with the demand for them rising together with the demand for the Dai mint. New MKR coins are generated automatically by the Maker platform in case any portfolio is identified as undercollateralized. In this manner, the mint is used to improve the solvency of the entire Maker ecosystem.
As of November 2018, the market capital rate of the Maker mint stood at USD 482 million, down from its all-time high from early 2018 when it went over USD 1 billion .
Buying MKR can be done through exchanges such as HitBTC or Bitfinex .