What is MKR crypto?
The decentralized finance (DeFi) sector has been at the center of attention of the cryptocurrency community since 2017. The Maker ecosystem, designed on the Ethereum blockchain and using ETH smart contracts, belongs to the first generation of DeFi ventures. If you are planning to invest in the Maker blockchain and its token, this should bring your profit in the future.
How do the crypto MKR blockchain and the protocol function?
The Maker (MKR) protocol saw light at the very end of 2017. The primary mission of the Maker ecosystem is to operate DAI — a community-managed stablecoin with a soft peg to the USD. DAI holders receive this token after locking any other asset (such as Ethereum, for instance) in the Maker storage. Later on, they can redeem the DAI stablecoin in exchange for another token — but they need to realize that the protocol permits pricing fluctuations. The decentralized entity that administers the DAI stablecoin is called the Maker DAO. MKR tokens perform the voting function. Instead of receiving interest, the Maker holders enjoy their right to vote regarding the further updates of the Maker protocol. So, in relation to the Maker DAO and Maker protocol the MKR coin functions as the governance token. The price of Maker MKR is supposed to grow as the DAI stablecoin takes off.
Why you should buy Maker MKR?
It is backed up by a promising project designed on the Ethereum blockchain. Maker should be flourishing in the next few years together with all the decentralized finance sector.
Stick to Dollar
The DAI token is soft-pegged to the USD which gives it a competitive edge over third-party cryptocurrencies created on the Ethereum protocol.
Locking the DAI
The procedure of locking the DAI pledge is highly transparent.
The DAI pledge is not stored in the Maker blockchain. Token holders may stay calm: hackers will not be able to get hold of their belongings.
To access the loan services stipulated by the Maker protocol, DAI holders do not need to pass the KYC procedure. The Maker blockchain allows anonymity.
The Maker DeFi token offers impressive opportunities for arbitrage trade.
What is the circulation of the MKR cryptocurrency?
To preserve its peg to the USD, the MKR crypto price requires complicated regulation mechanisms. There are no hard-code limits to the Maker DeFi token supply, and this is what differentiates it from most other assets on the market. Multiple interrelated algorithms control the emission and elimination of the Maker DeFi token. The ultimate goal is to ensure the collateralization of DAI stablecoin with third-party cryptocurrencies. At the moment of gathering this statistics, the circulating supply of the asset counted slightly over 1,000,000 MKR tokens. In the case of Maker, the circulating supply is equal to the total one. But this is a fluctuating parameter that might change rapidly, in relation to the condition of the DAI and the whole DeFI sector.