What is Maker (MKR)? Explanation of Maker (MKR) and DAI, Price predictions, and everything you need to know about (MKR) and DAI.
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Maker MKR History
Maker coin was made in California, USA, by Rune Christensen. He was a developer and programmer that passion was cryptocurrencies. The Maker has a strong team of more than 30 professionals working day and night to succeed.
The Maker team was able to launch the MKR coin in 2015. After three years of the project launch, DAI stable coin was launched in December 2017. In 2018 Wanchain introduced DAI as the first cross-chain ERC20 token. In December 2018, Kraken became the first exchange to list Both DAI and MKR tokens. In August 2019, a crypto loan provider Ledn, utilize Dai to give loans. In September 2019, a community governance model was launched where MRK control was shifted to Maker Governance. In 2020 Binance launched both MKR and DAI on their exchange.
What is Maker MKR
Maker (MKR) coin is a decentralized autonomous organization built on Ethereum blockchain. They also have their stable coin, DAI. Unlike the MKR token, this Dai coin is not volatile. Maker is the utility token on the Ethereum network whose value increases as more use is made of Dai’s stable coin. The goal of this project is to tokenize different assets. Think of gold oil, commodities, and currencies like USD, GBP, EURO. The plan is to create an exchange on which margin trading of these tokenize assets can be performed.
Those who hold MKR tokens can vote for the risk management and business logic of the ecosystem. MKR cannot be mined. It works on the principle of margin trading.
The Dai tokens’ value is “secured” and guaranteed because a specific value has been used as collateral, known as Collateral Dept Position (CDP). This happens in the Ethereum blockchain and means that any other stable fiat currency does not back the DAI.
This Ether is sent to a smart contract, after which margin trading can be done on a platform. This collateral ensures that the value of 1 Dai always remains equal to the value of 1 US Dollar. Therefore, this collateral ensures that there is still an amount stored in Ether that represents the value of the supply of Dai. How this works exactly is explained very clearly in the video below.
When we talk about the ecosystem in which the Maker and Dai are the native tokens, that is the MakerDAO. DAO stands for Decentralized Autonomous Organization. The holders of MKR have a say in the decision-making and management of the system.
The first aspect that makes MakerDAO safe is a group of oracles. The MKR holders choose these oracles, and they enter external data into the blockchain.
They provide real-time information about the price and guarantee the status and security of everything collateralized by the smart contracts. So they keep an eye on Dai and whether everything is okay with it. They continuously check whether there is enough Ether available to back the value of Dai.
The main activity in the DAO is the creation of Dai. In principle, anyone can do this. You deposit a certain amount in ETH into the MakerDAO smart contract. This changes ETH into CDP. By doing this, you pay an amount in the form of MKR as a transaction fee.
You may think: what is the underlying goal? Picture yourself at the end of 2017. Back then, the price of a Bitcoin (BTC) shot from a few thousand dollars to about $ 20,000 in no time.
That makes this currency unsuitable as an application for peer-to-peer payments. If you ordered a coffee one day with your BTCs, if you look back on it months later, you may have paid a fortune for it.
The Dai token came into play for this problem: it is a stable decentralized currency balanced against the US Dollar by smart contracts. We know Tether (USDT) as the best-known variant of a stable coin, but you can seriously question its decentralized nature. So Dai is indeed decentralized and backed up.
The MKR token is, therefore, used to facilitate the ecosystem. Think of transaction costs if you send Dai’s, for example. This makes it entirely speculative. When the smart contract expires, the used tokens will be gone, reducing the supply. And the more people start using the Dai coin, the less MKR there will be. The lesser the MKR token, the higher its price will be. Also, Dai is decentralized and stable in price. This makes it extremely suitable for daily p2p applications.
Maker MKR Price Prediction
In the past, many predictions have been made about the Maker price. They were made within the crypto community and by crypto influencers who appear on YouTube videos and Twitter. Maker’s predictions for the end of 2020 hover between $ 5561 and $ 649.
The Maker forecast for 2021 varies around $ 673 and $ 941. The price prediction for the Maker price for 2025 is predicted above $ 2200. It is always good to remember that these are our predictions, we are not financial advisors, and no one knows where the course will eventually go.
If you want to invest in Maker, invest in moderation, and only what you can afford to lose. Investing in cryptocurrency is always a bit of a gamble. And it is up to you how you deal with it. In our case, Maker is undoubtedly an attractive investment for your portfolio.
Is Maker MKR A Good Investment
At the time of writing, Maker is at Rank#44 in a market cap out of thousands of crypto coins. This shows the strength of the Maker project and its legitimacy. Maker coin is the right investment choice as it has substantial growth potential, an excellent team, and high market cap rankings.
Are you interested in investing in Maker (MKR) and Dai? These tokens are traded on many different exchanges.
Where To Buy Maker MKR
Buying a Maker coin is simple. Nothing complicated. Maker is present on almost all exchanges. You can select centralized or decentralized exchanges to buy Maker (MKR) according to your choice.
As Maker is among the top coins so you can buy it on all top crypto exchanges like:
- Binance US
- Coinbase PRO
- Huobi Global
How Much Total Supply Of Maker MKR
According to Coingecko data total supply of Maker (MKR) is 1,005,577. This is a fixed and final total supply. No more Maker coins can be generated. The circulating supply of Maker (MKR) is 909,559 / 1,003,115. This circulating supply is decreasing daily. When more Dai coins are used, Maker coins will keep on burning in a fixed ratio with DAI usage. The decreasing supply of Maker is resulting in the price increase on Maker (MKR).
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I am the editor-in-chief of The Crypto Basic. Love to get involved in cryptocurrencies. I am in crypto since 2014. I like the way blockchain is progression, being adopted by large firms and in most parts of our lives. We are early adopters and followers of blockchain, and time will surely come when our success factor will be blockchain.