Maker

What is Maker (MKR)?

• Governance token for MakerDAO and Maker Protocol on Ethereum blockchain.

• It provides voting rights on the development of the Maker Protocol.

• The value is tied to the success of DAI stablecoin.

Tokenomics

• Maker is created or destroyed based on DAI price fluctuations.

• The total supply of the coin fluctuates; as it is burned with system fees or minted during liquidations.

• Initial distribution: 69.50% to founders/projects, 15.00% to the team, rest to seed rounds.

As of today #{today’s date}, the price of Maker is ₹1,54,712.00 INR or 1660 USD, with a 24-hour trading volume of 115760227.61 USD. The market capitalization for Maker is 1484873108.71USD. The circulating supply is 891079.09 Maker, with the total supply also being 919852.97 Maker.

Pros:

• MKR holders have governance rights, influencing the Maker Protocol’s decisions.

• The token has a deflationary mechanism, as it is burned when fees are paid.

• It supports the stability of the DAI stablecoin.

Cons:

• MKR’s value can be volatile and is not a stablecoin.

• The complexity of the Maker Protocol may be a barrier for new users.

• The concentration of MKR tokens could lead to governance issues.

Why Should You Invest in the Coin?

• Suitable for those believing in decentralised finance (DeFi) future.

• Voting rights in governance of a leading DeFi platform.

• Potential appreciation linked to DAI's success.

USP of the Coin

• Governs Maker Protocol, a key player in DeFi.

• Unique dual-token structure with DAI for market stability.

Problem the Coin is Solving

• Aims to stabilise DAI value against USD to counteract market volatility.

Founder and Team Background

• Founded by Rune Christensen, a DeFi pioneer.

• Team focused on transparency, decentralisation, with global contributors.

ICO Price

• No ICO; introduced through private sales.

Risks Associated in Investing in the Coin

• Market volatility, regulatory changes, technical vulnerabilities.

• Dependence on Ethereum blockchain impacts fees, transaction speeds.

Whitepaper Insights

The Maker whitepaper outlines the structure and function of the MakerDAO and the Maker Protocol, which aim to create a decentralised stablecoin, DAI, pegged to the US dollar. The system uses a dual-token model, with MKR as the governance token and DAI as the stablecoin. The Maker Protocol operates on the Ethereum blockchain and utilises smart contracts to manage Collateralized Debt Positions (CDPs). Users can lock in collateral through ETH or other approved assets to generate DAI. The value of the collateral is always higher than the DAI generated, ensuring over-collateralization.

MKR token is used for governance, allowing holders to vote on changes to the protocol, including risk parameters and system upgrades. The governance mechanism is designed to be community-driven, with MKR holders incentivized to make decisions that maintain the system’s stability and success. The whitepaper discusses the Maker Protocol’s risk management system, which includes a set of parameters for each collateral type. These parameters determine factors such as the Debt Ceiling, Stability Fee, and Liquidation Ratio. The Stability Fee is paid in MKR, which is then burned, reducing the total supply and creating a deflationary pressure on the token.

The MakerDAO also includes mechanisms for system recapitalization in the event of under collateralization. This involves creating and auctioning new MKR tokens to cover the deficit, which aligns the incentives of MKR holders with the health of the system. The whitepaper emphasises the importance of decentralised governance and the role of MKR holders in ensuring the protocol’s adaptability and resilience. It also addresses the potential for scaling the system to support a broader range of collateral assets and integration with other blockchain platforms. The MakerDAO’s goal is to create a more inclusive financial system by providing a stable currency and access to credit without the need for traditional banking infrastructure. The whitepaper presents a vision for a future where anyone, regardless of location or status, can participate in the global economy with greater freedom and equality.

In summary, the Maker whitepaper provides:

• A comprehensive overview of the MakerDAO’s objectives.

• The functionality of the Maker Protocol.

• The dual-token model.

• Governance processes.

• Risk management.

• The broader implications for the future of finance.

It lays out a detailed blueprint for a decentralised stablecoin system that aims to mitigate the volatility of cryptocurrencies and promote financial inclusion.