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MKR
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Maker
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The price Maker today is 2,882.89 USD, and the trading volume in 24 hours - 137,346,857 USD. The crypto asset has grown by -1.34% over the day. Currently, the coin’s market capitalization is 2,857,889,129 USD, and has 991,328 coins in circulation with the max supply of 106,198,216 coins MKR.

What is Maker (MKR)?

Maker (MKR) is the managing token of MakerDAO and Maker Protocol, a decentralized organization and software platform based on the Ethereum blockchain that allows users to issue and manage DAI stablecoins.

Originally conceived in 2015 and fully launched in December 2017, Maker is a project that aims to manage DAI, a decentralized community-driven cryptocurrency with a stable value pegged to the US dollar.

MKR tokens act as a kind of voting stock for the organization that manages DAI. While they do not pay dividends to their holders, they do give holders a say in the development of the Maker Protocol and are expected to rise in value in line with the success of DAI itself.

The Maker ecosystem is one of the earliest projects on the scene of decentralized finance (DeFi) - an industry that aims to create decentralized financial products based on blockchains with support for smart contracts such as Ethereum.

Who are the founders of Maker?

MakerDAO, the first organization in the larger Maker ecosystem, was created in 2015 by Rune Christensen, an entrepreneur from Sealand, Denmark.

Christensen graduated from the University of Copenhagen with a degree in biochemistry and studied international business at the Copenhagen Business School. Prior to MakerDAO, he was the co-founder and head of the international recruitment company Try China.

What makes Maker unique?

DAI is one of the most popular stablecoins (cryptocurrencies whose prices are pegged to the US dollar or other traditional currency). MKR's unique offering is that it allows its holders to participate directly in the DAI management process. Each token holder has the right to vote on a number of changes to the Maker protocol, with their voting rights depending on the size of their MKR share. 

How many Maker Coins (MKR) are in circulation?

The release and removal of MKR from the network is governed by a complex system of interdependent mechanisms designed to ensure that DAI is always fully backed by other cryptocurrency assets and its soft peg to the US dollar is maintained. There is no hard-coded limit on the total number of MKRs.

The value of DAI is secured by collateral - other cryptocurrencies that are deposited by users when mining new DAI tokens, and stored in so - called repositories-smart contracts in the Ethereum blockchain.

During price declines, the value of the cryptocurrency stored in the vault may become insufficient to fully secure the appropriate amount of DAI. In this case, the Maker Protocol automatically initiates the liquidation of the contents of the repository, the proceeds from which it uses to cover the obligations of this repository. If the amount of DAI generated during liquidation is insufficient, Maker Protocol creates new MKR tokens to sell and cover the remaining amount, thereby increasing the total supply.

However, in some cases, the amount of DAI received from auctions exceeds the necessary limit to cover the full collateral, and therefore it is used by the Maker protocol to buy back and burn MKR tokens, reducing their total number.

Thus, the MKR supply is a dynamic quantity that changes depending on market conditions and the overall state of the DAI ecosystem. As of January 2021, the turnover of Maker tokens is about 1 million, worth more than $ 797 million.

How is the Maker network protected?

MKR is an ERC-20 token, which means that it works and is protected by the Ethereum blockchain. Ethereum, in turn, is protected by the Ethash proof-of-work function.

Summary

  • To own your crypto assets, you need to manage your own private keys.
  • Ledger hardware wallets make private key management easy and secure.
  • Each unique 24-word recovery phrase creates a new set of private keys.
  • Make sure you secure your 24-word recovery phrase properly.
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