What is Maker (MKR)?
Future of MKR Cryptocurrency and know how to buy MKR
Maker MKR is the utility token for Maker which is powered by Ether. This particular platform is based on the blockchain technology and allows international payments along with P2P transfers. Dai is a stable coin which is developed and linked to Maker MKR. The prime motto of the platform is to dodge the current volatility in the market.
Maker: The Basics
- Rune Christensen founds MakerDAO. The platform is known to make use of different approaches to stabilise DAI with the help of its proprietary token MKR. It is an exciting approach which is known to follow fractional reserve banking. It mean that the bank is required to hold only a fraction of its total deposit liabilities. DAI is a stable coin that is developed to address volatility in the market.
- Ethereum powers the platform. It is based on the blockchain technology and is known to make use of smart contract ecosystem.
- MKR is backed by ECR20 token which is based on the Ethereum blockchain. It means that the token cannot be mined. It is instead created or destroyed in response to price fluctuations in the market. It is done to maintain its price stability. MKR token is mainly used to make payments on the Maker platform. Not just that, but it also collateralises the entire system as well.
- The voting system of the Maker platform provides voting rights to the MKR holders. MKR tokens devalue due to bad governance. In this case, MKR holders are incentivised so that they vote for the betterment of the entire platform. It is ultimately a democratic and decentralised structure.
- DAI cannot be mined. Instead, it is an issue by purchasing a CDP that is known to act as a loan. Once the loan is cleared off, the DAI token is then destroyed. It is done when the smart contract is fulfilled.
- The maker platform is known to make use of 3 primary mechanisms to stabilise the DAI token. It includes the target price, target rate feedback mechanism, and sensitivity parameter.
What are the benefits of Maker token?
- MakerDAO is considered to be an ambitious project. It is mainly aimed at developing a decentralised future for crypto coins. The platform is also loaded with several features.
- Unlike other cryptosystems, Maker has a two-token policy. It includes both DAI and MKR. Both the tokens are based on ERC20.
- Maker is known to make use of CDP smart contracts and MKR token to maintain the stability of the DAI token at $1 US dollar.
- Maker is a decentralised platform that is mainly focused on decentralised exchanges. It is backed by many of the well-known exchanges in the world.
- MKR holders are given the voting rights in the Maker platform. The MKR holders are the people who are treated as the buyers of the Dai token. MKR holders are incentivised to run the platform.
- Maker is one of the very first DAO ever.
- Dai token is known to have one of the best use-cases in the whole of the crypto market. It is considered to be an essential tool which is required to partner projects. It is necessary to incorporate and also add value to the clients.
How to buy and store Maker token?
Maker is one of the rarest decentralised platforms that have a two-token system. MKR and DAI are the two tokens that are used on the Maker platform.
- The exciting thing about Maker coin is that it is not available on popular crypto exchanges, but it is still one of the highly demanded crypto coins in the world. It means that investors are willing to invest and buy Maker coins.
- Since Maker coins are not available on top exchanges, you need to first look for the right exchange from where you can purchase maker coin. Some of the leading cryptocurrency exchanges from where you can buy Maker coins include Bibox which is a Chinese crypto exchange.
- To buy Maker coins, you need first invest in Bitcoin. It is because exchanges like Bibox do not accept fiat currencies. Instead, popular cryptocurrencies are traded for less popular crypto coins like Maker.
Both the Maker coins MKR and DAI are based on ERC20 token, and therefore, you can store them in any wallet that supports ERC20 token. One of the well-known wallets that you can rely on is MyEtherWallet and Guarda wallet.
What is the future of Maker token?
- The crypto market is always volatile and uncertain. It is true that Maker can somewhat overtake the challenges posed by volatility; there still exist factors that need to be questioned.
- As per experts, Maker is going to perform well in 2019. However, it is advised for investors not to take long term risks. It is also expected that the price of Maker is going to go double in comparison to its current rate. However, one should always stay prepared to face a turbulent journey in the crypto market.
How Is Maker different from other cryptocurrencies?
Maker is one of the very few platforms that is known to have a two-coin system. It is what sets Maker apart from the rest of its competitors in the crypto market.
Should you invest in Maker token?
- When it comes to investing in Maker, it has several advantages to look. Maker coin is powered by one of the top crypto coins, Ether.
- The team behind Maker is also known to work hard to stabilise the value of the DAI token. For this, they have several methods in their handbook. If you go through the whitepaper of the project, you will get to learn more about these methods.
- According to experts, the Maker coins are going to do good in the coming years which seems to be the perfect excuse to invest in Maker token.
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