What is Maker (MKR)?

What is Maker (MKR)?

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Maker (MKR) is the governing token of the MakerDAO system, and the official Maker Protocol, which refers to decentralized organizations that were built on the programmable blockchain of Ethereum, with MKR is an ERC-20 standard token.

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Maker is a project that aims to run DAI, referring to an online crypto community-run decentralized digital asset that has a stable value soft-pegged to the US dollar. While MKR tokens do not pay dividends, MKR holders can obtain voting rights over the development and upgrading of Maker Protocol, with the value expected to increase as DAI grows.

Decentralized finance (DeFi) is an industry that tries to construct decentralized financial solutions on top of smart-contract-enabled blockchains like Ethereum.

 

Component Maker (MKR)
Technologies Smart Contracts
Market Capitalization $2.3 Billion
Open-Source Yes
Smart Contracts Yes
Founders/Authors Rune Christensen
Launch Date 2017
Circulating Supply of Coins 986,399 MKR
Maximum Coin Supply 1,005,577 MKR
Mining-based Coin? No
Is Maker a Stablecoin? Yes
Does Maker have a burn rate? Yes
Does Maker have a Whitepaper? Yes, the white paper can be viewed here

 

Evolution and Development of Maker

Rune Christensen, a developer, and entrepreneur launched MakerDAO in 2014 in California. It has core management in addition to a group of development staff consisting of 20 people. MakerDAO has officially released the stablecoin DAI, which has been under development for three years.

  • Maker DAO was formed in 2014.
  • MKR token was released in August of 2015.
  • DAI – December 2017 On the Ethereum mainnet, a stablecoin has been introduced.
  • DAI became the first cross-chain ERC-20 token in the crypto space on the Wanchain in October 2018.
  • DAI, a native MakerDAO token, was listed on the Kraken crypto exchange trading platform in September 2018.
  • Lend (a lending blockchain project) started using MakerDAO to issue loans to the financially excluded nations in October 2019.
  • Maker Foundation hands over the authority of MKR to Maker Governance in December 2019.

 

What makes Maker unique?

Maintaining DAI's $1 value is made easier by the MKR token. To keep DAI's dollar-equivalent value stable, MKR may be generated and destroyed in reaction to price variations. With the support of holders, DAI utilizes a system of collateralization (which is a kind of insurance) to govern its network.

To get DAI, users must first acquire a CDP, or collateralized debt position, smart contract-based security. Ether (ETH) is used to buy CDPs, and DAI is supplied in exchange. In the same manner, that a home would serve as security for a mortgage loan, ETH serves as collateral for the loan.

This means that individuals could get credit against their ETH assets because of the system. When the loan is returned and paid off, DAI is subsequently burnt.

The MKR coin is an alternative to the DAI system if the price of ETH decreases too rapidly. MKR is issued and sold on the market to raise more collateral if the collateral mechanism is not sufficient to meet the value of DAI.

In terms of DAI and MKR, the Maker Platform, previously MakerDAO, serves as the protocols and the overall governance structure. 

 

What are the main uses for Maker?

When users hold MKR, they are granted voting rights in the ongoing approval voting method used by the Maker platform. MKR investors can vote on issues such as the collateralization rate of CDPs.

Users also receive MKR fees as a reward for participating in the network governance. These users are therefore rewarded for voting in a system-beneficial manner.

If the system functions well, the value of MKR is maintained or grows. MKR's worth would be devalued because of poor governance.

MKR is an ERC-20 token built on the Ethereum platform. It may be kept in ERC-20 wallets and traded on a variety of cryptocurrency exchanges.

 

What is the future potential for Maker?

MakerDAO hopes to develop a stablecoin in DAI as well as a credit system that is fair to everyone. DAI may offer liquidity against crypto-assets by establishing a collateralized debt position (CDP) using Ether.

Adding MKR to DApps allows for payment settlement anytime, anywhere. These transactions are confirmed in milliseconds. This is owing to quicker block generation times and lower costs.

To quickly accept or pay in crypto assets such as ERC20 tokens, ETH, Maker offers APIs/SDKs. Maker allows decentralized exchanges to give consumers fast and low-cost trading.

Maker integration gives these exchanges a boost, making them more reliable and secure. These decentralized exchanges are the future of crypto. Maker strengthens gaming networks, speeding up transaction processing—a lending and credit rating tool for merchants, Maker.

Traders may assess their borrowers' reliability and trustworthiness by looking at their transaction history, allowing them to lend tokens to individuals more likely to pay on time. Maker users can easily access DEXs, lending DApps, and other financial services. 

 

Price analysis on Maker

Maker was initially launched in 2017, and its price analysis over the past five years are as follows:

 

  2017 2018 2019 2020 2021to date
MKR Price High $1,394.94 $1,690.19 $787.74 $797.32 $6,012.46
MKR Price Low $248.32 $307.83 $369.97 $206.91 $586.96
Market Cap $1.04B $787M $801M $5.98B

 

Price prediction on Maker

The future price of Maker will reach $6070, making it worthwhile to invest in Maker with the least price fluctuation.

Despite the heightened price risk, experts believe Maker (MKR) is a strong short-term investment. Currently, the average price for Maker in 2022 is $7103, with a maximum price of $8820 forecast in 2023.

 

Which wallets are the best option for storing Maker?

The Maker project cryptocurrency, like other tokens and currencies, must be kept in a wallet. As the crypto world is widely aware, there are primarily two kinds of wallets: cold wallets and hot wallets. The MKR may be kept in both cold and hot wallets.

The following are the best wallet options for MKR:

  1. Atomic Wallet
  2. Ledger Nano X
  3. Ledger Nano S
  4. Trust Wallet
  5. Crypterium Wallet

 

1. Atomic Wallet: Due to its enhanced security characteristics and superior security features, Atomic Wallet is one of the most frequently recommended multi-currency wallets for holding Maker Tokens.

The Atomic Wallet enables users to securely store any major cryptocurrency and over 500 different digital assets on any operating system.

 

2. Ledger Nano X: Ledger Nano X is a trusted hardware device that was introduced in 2019 by Ledger SAS. Since 2015, Ledger SAS has been a pioneer in digital asset protection.

The Ledger Nano X is the finest gadget to have since it enables you to securely manage the user's seed and private keys. Additionally, the Nano X supports the storage of 1000+ other coins, including MKR, which may be advantageous for multi-currency users.

 

3. Ledger Nano S: Ledger Nano X is the successor of Ledger Nano S, one of the most sought-after hardware wallets for long-term cryptocurrency security.

The Ledger Nano S provides the same level of security and is manufactured by the same firm. It is just that; it has fewer features than Nano X.

 

4. Trust Wallet: Trust Wallet is becoming a more popular option for storing Maker MKR tokens. What distinguishes the Trust Wallet is the range of digital tokens that are supported. This multi-asset digital wallet is compatible with over 40 different blockchains and a diverse array of digital assets.

 

5. Crypterium Wallet: The Crypterium Wallet takes a different approach to wallets than those mentioned before in this article. Rather than marketing itself as a cryptocurrency wallet, the Crypterium Wallet positions itself as a one-stop shop for managing digital funds.

Best Bitcoin Wallets are the same as MKR wallets.

Where can you buy Maker?

MKR can be bought, sold, and exchanged on any of the following crypto exchange trading platforms:

  1. Uphold
  2. Binance
  3. Gate.io
  4. FTX Exchange
  5. ProBit Exchange

 

1. Uphold: Uphold is a free desktop and mobile cryptocurrency trading platform that allows users to trade Maker (MKR) and other cryptocurrencies. They started in 2014 and currently have over 1.5 million members globally.

One of the group's most unusual features is the ability to trade across asset classes. This increases efficiency and avoids needless conversion expenses.

 

PROS CONS
Uphold is extremely transparent about all fees and spreads The educational section is tedious to navigate
There is no minimum deposit requirement  
All assets that are listed can be bought fractionally  
Users need not worry about inactivity fees  
Users can easily convert different asset classes  
The trading platform and mobile apps are extremely user-friendly  

 

2. Binance: Binance is one of the world's most popular cryptocurrency exchanges. Buying Maker (MKR) here offers cheaper exchange costs than other exchanges, and enhanced liquidity allows users to purchase and sell swiftly to profit on market-shifting news.

 

PROS CONS
The exchange is well-known for some of the lowest instant and non-instant fees Account verification can be tedious
There is a vast selection of digital assets The corporate structure is not transparent
There are several additional services  
The exchange has a high trust score  
The platform has large amounts of liquidity  

 

3. Gate.io: Gate.io, founded in 2013, is a respected trading platform featuring an easy-to-use interface for novices and sophisticated charts for technical traders. Also, they are the first exchange to add new tokens, like Maker (MKR). Best of all, they are strongly opposed to market manipulation.

 

PROS CONS
Gate.io lists a large range of digital assets and new coins are listed frequently Fiat deposits are not supported
The mobile app is robust and works seamlessly with the web version Unregulated
Users can access over 400 different crypto markets The development team is not transparent
There are advanced features offered The interface is messy, and the exchange is not suited to beginner traders
Traders can use margin trading with a maximum leverage of up to 1:10  
The platform is trusted and there is dedicated customer support given  

 

4. FTX Exchange: FTX is a crypto derivatives exchange with over 100 spot cryptocurrency markets, including Maker. FTX is renowned for its user-friendly desktop and smartphone interfaces for futures, options, volatility products, and leveraged tokens. They feature trading tools for both professionals and regular traders.

 

PROS CONS
The platform is focused on providing crypto derivatives trading FTX is a new platform and faces significant competition 
The exchange guarantees high liquidity for all users  
The platform is known for low fees and excellent trading solutions and services  

 

5. ProBit Exchange: Probit Exchange bills itself as a worldwide cryptocurrency coin-to-coin exchange. ProBit Exchange only offers bitcoin projects that it judges to be ‘competent and meritorious.'

While ProBit Global is registered in the Seychelles, its Korean equivalent is tightly controlled in Korea, ensuring that the exchange's crew is trustworthy and reputable. ProBit is an initial coin offering (ICO) platform.

 

PROS CONS
The cryptocurrency exchange has low trading fees and a wide selection of coins There is no support for fiat currency trading
There is no mandatory KYC when traders register on the exchange There is no margin trading
The exchange has a professional development team that caters for beginners and professionals There is no app for iOS devices
The exchange has decent functionality  

 

Does Maker use coin burns?

Yes, Maker uses coin burns.

Maker (MKR) administers a credit system for smart contracts. The smart contracts on Maker enable anyone to borrow DAI in exchange for the value of your ETH. Users are subsequently minting fresh DAI tokens when they create a collateralized debt position (CDP) to loan DAI.

To guarantee that DAI remains constant in value, users are paid an annual interest rate (or a stability fee). The MakerDAO, which is composed of MKR holders, is responsible for regulating this fee and the dollar peg of DAI.

When the peg slips, holders of MKR tokens vote to change the fees to raise or reduce demand for DAI.

When it comes time to refund the CDP debt, users must pay the existing debt in DAI together with any interest costs accumulated in MKR tokens.

This means that users are burning both the DAI and MKR tokens throughout the repayment procedure.

As with a stock buyback, burning MKR boosts the market value of the remaining supply of tokens, providing an incentive to possess MKR. As MKR holders, individuals, like a company's shareholders, are motivated to ensure that things function smoothly.

 

What is Maker’s largest Competitor?

Aave is the largest competitor of Maker.

Maker and Aave have evolved as two of the most prominent names on the DeFi landscape, and investors have taken note of how swiftly such projects' native tokens have dominated the broader digital currency market.

Stani Kulechov founded Aave, a Bitcoin loan company, in 2017. Originally known as ETHLend, the company changed its name in 2018 after major investment.

Additionally, the project evolved from a very straightforward peer-to-peer decentralized lending platform to a system of lending pools that allows users to earn money by providing liquidity.

Users may contribute bitcoin to the AAVE protocol, therefore providing liquidity for the project's lending component. Those that stake their tokens are then entitled to a percentage of the interest earned on loans made by a specific pool.

Additionally, the project's creators released Aave Pro, a version of the protocol geared for institutional investors. This version of the platform has a mandated Know Your Customer (KYC) procedure, which enables it to comply with legal requirements for offering services to institutions.

 

What can Maker smart contracts do?

Maker smart contracts are simply computer programs that are accommodated by blockchain technology. No third party is required to assure their execution; when the requirements are satisfied, the programmed operations run autonomously.

Ethereum's smart contracts underlie all decentralized coins, apps, and systems, including Dai and the Maker Protocol. The decentralized nature of MakerDAO is enabled through smart contracts, which are key to Decentralized Finance (DeFi).

They drive the Protocol, the DAI stablecoin, the most widely used cryptocurrency in DeFi, Maker Vaults, which create Dai, and MakerDAO community governance.

Smart contracts also allow for the development of non-fungible tokens (NFTs), which are unique assets that play a vital role in the Maker environment, including serving as collateral.

 

Is Maker a Good Investment?

Yes, Maker is a good investment, according to crypto analysts. Based on forecasts, long-term growth is anticipated; thus, the price forecast for 2026-12-26 is 13731.40 US Dollars. Revenue is predicted to increase by around 482.85% during five years.

 

What is the supply and distribution of Maker?

At the time of writing, there are 986,399 MKR tokens in circulation and a maximum supply of 1,005,577 MKR. 

MKR is issued and removed from the system through a complex series of interdependent systems. This ensures DAI is always adequately collateralized by other digital assets and that its soft peg to the USD is maintained, and MKR's entire supply is not hard-coded.

 

Is Maker a viable Alternative Coin?

Yes, Maker is one of the best altcoins in the crypto space.

  • Traceability – While transactions are recorded on a public ledger, it does not disclose the true identities or location of users who transact using the Maker platform.
  • Technology – MakerDAO is integrated with key technologies in the DeFi space, including DeFi and others.
  • Price Stability – Maker is known for its price stability
  • Potential Investment – Maker has a significant amount of investment potential not only in terms of being a store of value but also a medium of exchange in the DeFi space

Any cryptocurrency that isn't Bitcoin is referred to as an altcoin.

What are the differences between Maker And Bitcoin?

Bitcoin is the largest cryptocurrency in the market now in terms of trading volumes, market capitalization, usage, and popularity.

Bitcoin uses an SHA-256 algorithm for mining purposes according to its Proof of Work consensus mechanism that secures the blockchain, while Maker does not employ a consensus because of its nature as a stablecoin.

Bitcoin has a significantly larger market capitalization, price performance, and value than Maker. Bitcoin is a store of value in addition to being a medium of exchange, and it is globally being accepted as an alternative payment method.

 

  Bitcoin Maker
Price change 20/21 +400% +1.2%
Market Cap $800 Billion+ $2.3 Billion+
Past Hacks None Yes, 2022
Popularity Very High Low
Altcoin Rank #1 – Original Crypto #60

 

What are the differences between Maker and Ethereum?

Ethereum is not only the second-largest crypto-asset but also the largest programmable blockchain, smart contract environment, and DApp platform in the industry.

Ethereum was created to allow developers to create and deploy a wide range of DApps that can be used in a range of real-world applications. Maker is a peer-to-peer organization that was created on Ethereum, allowing its users to lend and borrow crypto.

 

  Ethereum Maker
Price change 20/21 +880% +1.2%
Market Cap $460 Billion+ $2.3 Billion+
Past Hacks None Yes, 2022
Popularity Very High Low
Altcoin Rank #2 #60

 

What are the differences between Maker and Dogecoin?

Like Bitcoin, Dogecoin is a medium of exchange. Dogecoin was initially created as a joke, but it gained a significant amount of merit, especially in online crypto communities.

Dogecoin is used to tip content creators on social platforms, and Maker offers its users the chance to either borrow or lend crypto. In addition, Dogecoin is much higher on the altcoin rank as a popular, volatile, and valuable coin.

Dogecoin also has the support of some of the most influential people in the world, including Elon Musk.

 

  Dogecoin Maker
Price change 20/21 +7,300% +1.2%
Market Cap $22 Billion+ $2.3 Billion+
Past Hacks None Yes, 2022
Popularity High Low
Altcoin Rank #12 #60

 

What are the differences between Maker and NEO?

Neo is an open-source, community-driven platform that leverages the inherent benefits of blockchain technology to create the future's most optimal digital environment.

Maker is an Ethereum token that bills itself as a “utility token, governance token, and resource for the Maker system's recapitalization.” The Maker system's objective is to create another Ethereum token, called Dai, that will strive to trade on exchanges for precisely US$1.00.

 

  NEO Maker
Price change 20/21 +160% +1.2%
Market Cap $1.70 Billion+ $2.3 Billion+
Past Hacks None Yes, 2022
Popularity Medium Low
Altcoin Rank #69 #60

 

What are the differences between Maker and NFTs?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. Maker, on the other hand, is fungible, which means that one MKR has the same value and characteristics as another MKR.

 

What are the differences between Maker and Solana?

Solana is another popular programmable blockchain that often competes with Ethereum. Solana is priced much lower than Maker, but it also has a much larger circulating supply.

Solana is more popular than Maker according to altcoin listings, and it also features a higher 24-hour trading volume than Maker. Solana forms part of fewer trading pairs in the crypto market than Maker, and it is based on its own blockchain, whereas Maker runs on Ethereum.

 

  Solana Maker
Price change 20/21 +9,300% +1.2%
Market Cap $54 Billion+ $2.3 Billion+
Past Hacks None Yes, 2022
Popularity Very High Low
Altcoin Rank #5 #60

 

What are the differences between Maker and DAI?

Maker ($MKR) was designed as a utility and governance token for a blockchain-based platform that enables peer-to-peer transfers and international payments. To mitigate the crypto market's volatility, DAI was created and linked to Maker.

 

  DAI Maker
Price change 20/21 +1.39% +1.2%
Market Cap $9.2 Billion+ $2.3 Billion+
Past Hacks None Yes, 2022
Popularity High Low
Altcoin Rank #22 #60

 

What is a Stablecoin?

As its name suggests, stablecoins are digital currencies that provide price stability. In addition, they are typically backed by other assets such as cryptocurrencies, fiat currencies, commodities, and other securities.

Because stablecoins provide the stability of fiat currencies and the versatility of cryptocurrencies, they have become increasingly popular. They are also known for rapid transaction processing and privacy, volatility-free prices, and more.

Stablecoins enable a significant and rising amount of digital asset trade by enabling market players to swiftly convert volatile digital assets into digital assets with more perceived stability and vice versa.

 

Is Maker a Stablecoin?

Yes, Maker is a stablecoin.

When users own MKR, they are given voting privileges in the Maker platform's continuous approval voting process. MKR investors have the power to vote on a variety of matters, including the collateralization rate for CDPs.

Additionally, users get MKR fees for their participation in network governance. As a result, these users are rewarded for voting in a way that benefits the system.

When the system operates well, the value of MKR is maintained or increases. MKR's value would be diminished because of ineffective governance. MKR is an Ethereum-based ERC-20 token. It is a coin that can be stored in ERC-20 wallets and exchanged on several cryptocurrency exchanges.