The Maker platform’s utility token, which also functions in conjunction with its Dai stablecoin, is known as Maker Coin. Its primary responsibilities include granting voting rights and permitting fee and interest payments on the platform.
What Is Maker Coin
The native cryptocurrency of the Maker platform is the Maker coin (MKR). It coexists with Dai, a decentralised stablecoin built on the Ethereum blockchain, which is another coin that utilises the same technology. The 35 people who worked together to create the Dai coin under the direction of Rune Christensen saw it become operational in December 2017. Dai seeks to address the problems with ordinary cryptocurrencies’ volatility, which keeps them from becoming widely used as a form of payment. Dai coin, which is backed by collaterals and offers stability relative to the US dollar (1 USD for 1 Dai), delivers value swings that are predictable and can occur on a daily basis.
In addition, Dai Coin enables its users all over the world to have greater access to financial services. This involves having access to a credit system with reliable loans, no regional limits, and accessible and fair access as guiding principles. Maker coin functions in the background as a utility token that supports the smooth operation of both the platform and the Dai stablecoin, making all of this possible.
Maker Coin Price
In contrast to its Dai “brother,” the Maker coin’s price might vary and is not dependent on the backing of any entities that own assets, such banks. Dai is backed by the smart contract-based system, unlike its close rivals Tether, which is backed by fiat currency kept in bank reserves. This entails giving consumers complete control, since they can easily transmit their Dai coins to their wallets and move them across the world. The Maker platform also seeks to establish itself as a dependable, more price-resistant platform for dapps (decentralised apps).
Maker Coin Use Case
Maker coins function as governance tokens, granting their owners the power to vote on any significant platform-related decisions. These include risk management, Dai loan repayment, and debt ratio setting. The Maker coin is used to pay the 1% interest charge associated with taking out a loan in Dai.
Additionally, the MKR coins serve as utility tokens for paying the fees associated with the collateralized debt position (CDP) mechanism, which enables the creation of Dai. The MKR coins are taken out of circulation when fees are paid, and their demand increases along with that of the Dai coin. The Maker platform will automatically create new MKR coins if any portfolio is found to be undercollateralized. In this way, the token is put to use to raise the solvency of the Maker ecosystem as a whole.
As of November 2018, the market cap value of the Maker coin stood at USD 482 million, down from its all-time high from early 2018 when it went over USD 1 billion.
As of November 2018, the market cap value of the Maker coin 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.
