Maker $MKR

MKR is a unique cryptocurrency functioning as a smart contract platform. Its primary objective is to offer a stable alternative to the majority of coins currently in circulation. Working conjointly with the Dai coin, it provides a transparent stablecoin system that can be fully inspected on the Ethereum blockchain.

Maker and MakerDAO

Maker is a relatively new entrant to the cryptocurrency market, having been founded nearly three years ago by Rune Christensen. Despite its relative obscurity, it has recently exploded in popularity, surging by 40% and carving out its own niche during the market's recent peaks and troughs.

The introduction of Dai

Developed by the MakerDAO team, Dai was officially launched on December 18th, 2017. As a price stable coin, it is suitable for payments, savings, or as collateral, thus providing traders with increased flexibility when opening and closing positions. Dai operates entirely on the blockchain, with its stability unregulated by the legal system or trusted counterparties. Dai is a stablecoin, a type of token whose value is pegged to a specific fiat currency.

MKR As An ERC-20 Token

MKR is an ERC-20 token on the Ethereum blockchain, hence it cannot be mined. Instead, it is created or destroyed in response to Dai price fluctuations to keep it around the $1 USD mark. MKR is used for transaction fees within the Maker system and also acts as collateral for the system.

Governance in Maker

Ownership of MKR comes with voting rights within Maker's continuous approval voting system. This decentralized and democratic system incentivizes MKR holders to vote for the good of the entire system as bad governance results in devaluation of their MKR tokens.

Value Volatility and Stablecoins

Value volatility is a relative concept among both cryptocurrencies and fiat currencies, with significant differences in exchange rates and inflation impacting the value of a currency even against itself. Stablecoins like Tether and Dai, whose values are pegged to the U.S. dollar, aim to mitigate this volatility and stabilize the price.