There are two tokens in the Maker ecosystem: Dai and MKR. While Dai is a stablecoin backed by other reserves, MKR has a volatile price structure. Maker is a utility token and its price increases with Dai. So the ecosystem has a vicious circle between Dai and MKR. Moreover, MKR is the sole capital cycle source.
In Dai production within Maker system, transaction fees are paid with MKR. That’s actually the source of MKR’s utility token specification. When a payment is made, the token gets burnt. By doing this, the number of total tokens decreased gradually. The demand for Dai also increases the demand for MKR.
How does Maker (MKR) Work?
MKR is used for risk management and business logic within Maker system as a management token. It is highly essential for risk management and the system’s success. For every assurance asset, there is a voting process going on. All MKR owners can vote for their preferred option, revoke it whenever they want and offer a new deal. The offer with the most votes gets activated and changes can be made within risk parameters. For the safety of the platform, there is a “security delay” for a brief time after the offer gets activated.
The team behind the platform decides what to do about Dai’s future by asking its community. The community will be able to vote by using MetaMask, Mist, and Parity apart from decentralized applications to be developed.
What is the easiest way to buy Maker (MKR)?
according to the press release, There are a total of 989.110 MKR’s in circulation. You can buy MKR easily from the Bitfinex cryptocurrency exchange.
