Learn About Maker
The Maker Protocol, one of the largest decentralized applications (dApps) on the Ethereum blockchain, was designed by a diverse group of developers and is managed by MakerDAO.
MakerDAO is a decentralized autonomous organization (DAO) composed exclusively of MKR holders worldwide. These holders can stake their MKR tokens to vote on proposed changes to the Maker Protocol, ensuring Dai's efficiency, transparency, and stability.
Owning MKR is comparable to holding shares in a traditional company, as stakeholders influence operational decisions. The Maker ecosystem was among the first DeFi projects to achieve significant success—proof of a truly decentralized governance model.
What Is Dai?
Dai (or DAI) is a decentralized, neutral, collateral-backed stablecoin pegged to the US dollar. It’s a cryptocurrency that mirrors the USD’s value without centralized authority.
While blockchain offers innovative financial solutions, Bitcoin’s volatility limits its use as a medium of exchange. Dai addresses this need by providing stability, enabling broader blockchain adoption.
Dai is impartial (unlike corporate-managed stablecoins like USDT) and collateralized, meaning new Dai can only be minted by users depositing other cryptocurrencies into smart contracts. Dai holders also earn interest via the Dai Savings Rate.
How Does Maker Work?
The Maker Protocol generates Dai through smart contracts called Maker Vaults. Users access these via platforms like Oasis Borrow or Instadapp. To reclaim collateral, users repay the minted Dai plus a stability fee.
MKR tokens also govern the protocol. Proposals—submitted as smart contracts—are voted on by MKR holders. The winning proposal’s Ethereum address gains administrative access to implement changes.
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What Are Smart Contracts?
Pioneered by computer scientist Nick Szabo in the 1990s, smart contracts are self-executing agreements stored on a blockchain. They’re immutable and distributed, ensuring transparency and trustless execution.
Who Are Maker’s Founders? (Maker History)
Founded in 2014 by Danish entrepreneur Rune Christensen, MakerDAO launched Dai in 2017. The Maker Foundation, established in 2018, drives ecosystem growth and decentralization. Christensen serves as CEO, with key members including COO Steven Becker and economist Shefali Roy.
Initially, only Ethereum could collateralize Dai (Single-Collateral Dai or Sai). The 2019 Multi-Collateral Dai (MCD) update expanded support to other Ethereum-based assets approved by MKR holders.
What Makes Maker Unique?
Maker empowers MKR holders to govern Dai—one of the market’s top stablecoins—through votes on:
- New collateral types
- Risk parameters
- Dai Savings Rate adjustments
- Oracle selections
- System upgrades
Voting power scales with MKR holdings.
Risk Parameters
Approved collateral assets require risk parameters, including:
- Debt Ceiling: Maximum Dai mintable against the asset.
- Stability Fee: Dai-paid fee to reclaim collateral (annual percentage).
- Liquidation Ratio: Volatility tolerance threshold.
- Liquidation Penalty: Fee applied during vault liquidation.
Overly risky vaults trigger automated auctions.
What Gives Maker Value?
MKR derives value from its utility as a governance token. Demand for voting rights influences its price, which may rise with Dai’s success. Though MKR doesn’t pay dividends, its value correlates with Dai’s adoption.
How Many Maker (MKR) Coins Are in Circulation?
Initially, 1 million MKR were minted. Currently, ~902,000 MKR circulate (market cap: ~$2.1B). Supply fluctuates dynamically:
- New MKR is minted if auctions fail to cover vault debts.
- Excess Dai buys back and burns MKR, reducing supply.
MKR’s all-time high was $3,100 (February 2021), with a market dominance of 0.13%.
How to Use Maker
MKR’s primary use is protocol governance. Each token equals one vote. Holders also benefit from recapitalization mechanisms, incentivizing responsible risk management. Due to volatility, MKR is less suited as a medium of exchange but remains a speculative asset.
Choosing a Maker Wallet
- Hardware Wallets (Ledger/Trezor): Safest for large holdings.
- Software Wallets: Free, user-friendly for smaller amounts.
- Online Wallets: Convenient but less secure; ideal for traders.
👉 Secure your MKR with a trusted wallet
Maker Minting
MKR isn’t mined. Instead, supply adjusts through minting (to cover deficits) and burning (with excess Dai).
Conclusion
A DeFi pioneer, Maker demonstrates effective decentralized governance. Its future goals include broader Dai adoption beyond DeFi—charities, gaming, prediction markets, and global commerce. Maker balances real-world utility with innovation potential.
Maker FAQ
How to Buy Maker?
Purchase MKR on exchanges supporting ERC-20 tokens.
How to Sell Maker?
Trade MKR for other cryptocurrencies or fiat on supported platforms.
Maker Price
Track real-time MKR prices and market trends via crypto analytics tools.
👉 Stay updated with Maker’s latest developments
Need Help?
Contact customer support for assistance with MKR transactions or storage.
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