# The Decentralized Stablecoin Platform Developed on Top of the Ethereum Blockchain.

## Maker (MKR) Fact Sheet

* Maker (MKR) is a decentralized autonomous organization (DAO) that lives on top of the __[Ethereum (ETH) blockchain](https://ethereum.org/en/)__ and lets anyone lend or borrow cryptocurrencies without the need to check their credit.
* Maker is the decentralized network for lending, where MKR is the core utility as well as governance token.
* The network essentially fuses advanced __[smart contracts](https://www.investopedia.com/terms/s/smart-contracts.asp)__ with a pegged stablecoin.
* Holders of the MKR cryptocurrency are provided with the opportunity to make critical decisions surrounding the system's overall service and its future.
* The project was originally created in 2014 with the main intention of providing cheap and quick transactions by using the Maker Protocol.

## MKR Historical Data Price Chart in the US Dollars (USD)

 ![](https://yellow.com/api/storage/v1/object/public/articles/7e9776e3-80df-4558-8187-0f843726ab74.png)

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MKR Historical Data Price Chart in the US Dollars (USD). Source: __[TradingView](https://www.tradingview.com/symbols/MKRUSD/)__

## What is Maker (MKR)?

__[Maker (MKR)](https://docs.makerdao.com/getting-started/maker-protocol-101)__ is a cryptocurrency that MakerDAO developed. This cryptocurrency has the primary objective of supporting the stability of the Dai (DAI) cryptocurrency, which is MakerDAO's stablecoin and aims to enable governance within the __[Dai Credit System.](https://makerdao.com/whitepaper/DaiDec17WP.pdf)__

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In fact, throughout the MakerDAO ecosystem, there are two primary cryptocurrencies utilized in order to make it work the way it does. First, there’s the Maker (MKR) cryptocurrency, and then there’s Dai (DAI) as a stablecoin.

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DAI is, by design, meant to provide an alternative to the more volatile cryptocurrencies and enable users access to a new type of financial system.

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However, the MKR token is used to keep the DAI stablecoin as stable as possible.

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It is important to distinguish the three parts which make this ecosystem work, and these include:

* MakerDAO - this is the decentralized autonomous organization (DAO), which is filled by holders of the MKR token, who can guide the development of the Maker Protocol.
* The Make Protocol is a collection of smart contracts on top of the Ethereum (ETH) blockchain, which maintain the multi and over-collateralized DAI stablecoin.
* MKR - this is the native cryptocurrency of the ecosystem, and it is used within the Maker Protocol as a means of maintaining DAI's peg to the US dollar, and this occurs through numerous auctions that address the surpluses or even the deficits within the ecosystem, and as such is used by its holders to vote on governance protocol and maintain the protocol.

### How is Maker (MKR) Used?

Within systems utilized across traditional stablecoins, they will typically utilize reserves of FIAT currencies, or even gold, to peg a cryptocurrency in order for it to have value to the real-world assets, as they can keep it as stable as possible. However, this has proven to historically cause some issues.

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MakerDAO, as a result of this, uses the MKR token to act as an alternative to the price fluctuations that DAI might encounter.

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Some stablecoins also gain a lower level of volatility because they are pegged to FIAT currencies, such as USD. However, others can be controlled through blockchain-based mechanisms or even algorithms that can aid them in maintaining the value they need to be at.

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However, MKR stands out because it can retain the value of the DAI stablecoin the same as $1. This is done through the creation and the process of destroying MKR in response to the aforementioned price fluctuations of DAI.

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DAI can also leverage a collateralization system, where holders can fill the role of being a part of a controlling mechanism aiding in the overall network management.

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DAI as a stablecoin is used at the point in time when buyers put a purchase order on a smart contract-based __[collateralized debt position (CDP)](https://docs.makerdao.com/build/dai.js/single-collateral-dai/collateralized-debt-position)__, which can behave similarly to a loan.

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These CDPs are bought through the usage of the Ethereum (ETH) cryptocurrency, where DAI is provided in return for their ETH. ETH is the collateral to the loan, similar to how a house, for example, would serve the role of being collateral at the point in time when a person takes out a loan.

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This system can enable individuals the ability to get a loan against their ETH holdings, and when the loan gets repaid, the DAI is burned or destroyed, where the fees can occur in MKR afterward.

### Use-Cases of Maker (MKR)

The MKR cryptocurrency has the use-case of being the solution to an event in which the value of ETH might decrease too quickly for the DAI system to be able to handle it. If the collateral system is not enough to cover the value of DAI, in that case, MKR is created and is then sold to the market as a means of raising additional collateral.

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The Maker Platform, which is known as MakerDAO, is the protocol, as well as the governance framework on top of which DAI and MKR are used. This is a DAO on Ethereum. The smart contracts, in this case, are computerized codes that can contain and perform specific instructions which were coded in them at the points in time when the pre-determined conditions are met.

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In fact, MKR holders are provided with the opportunity to make a decision surrounding how much DAI holders can earn if they are saving DAI on the platform. The amount of DAI that holders earn for doing this procedure is dubbed the DAI Savings Rate. The DAI Savings Rate has been as high as 8.75% and as low as 0%. What this means is that the market can influence how much they are earning.

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MKR holders have historically voted to make the DAI Savings Rate go to 0% due to the fact that through this, they encouraged the future sale of the DAI cryptocurrency, which brought the DAI stablecoin closer to $1. In fact, any time the value of DAI goes above $1, the MKR holders are then expected to vote to decrease the savings rate and to reduce demand, which causes the prices to fall as a result. If it goes under $1, then they can vote to increase the savings rate, which increases the demand to hold the DAI cryptocurrency, and this causes its value to increase.

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The more MKR a person holds, the more they will be able to have a say when it comes to which cryptocurrencies can be used in the protocol or which real-world assets can be utilized in order to generate more DAI.

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Furthermore, Maker as a network has seen a high level of usage and as such, has established a __[large ecosystem](https://makerdao.com/en/ecosystem/)__.

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The ecosystem is split across multiple categories, including:

* Get Dai - this features __[dApps](https://www.investopedia.com/terms/d/decentralized-applications-dapps.asp)__ and Services such as Bitcointrade, Buenbit, Coinbase, and Oasis.app, Panda Exchange, Swissbord, and Wyre.
* Use Dai - this features dApps and Services such as Foundation, imToken, Museum of Contemporary Digital Art, Set Protocol, ValentePOS, and Wirex.
* Hold Dai - this includes dApps and Services such as Anchorage, Coinbase Custody, Ledger, MetaMask, MyCrypto, and Trezor.
* Accept Dai - this includes dApps and Services such as Althea, DENT, OpenSea, PundiX, Red Cross Argentina, and Wiv.
* Decentralized Finance (DeFi) - this includes dApps and Services such as 1inch, Curve, DeFi Saver, InstaDapp, Oasis Borrow, REN, and Uniswap.
* Games - this includes GameFi projects, such as Blocklords, F1 Delta Time, League of Kingdoms, Marble.cards, Sandbox and Xaya.

## Usability & Primary Features of Maker (MKR)

When we take a look at the usability surrounding the MKR cryptocurrency, any holder that has MKR in their balance will be able to gain voting rights within the platform’s approval voting system. In this case, MKR holders can vote on the collateralization rate of CDPs.

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For their participation, they can get MKR fees as a reward. The holders are incentivized to vote, in a direct way that can provide a broad benefit to the system. If the system works well, the value is maintained or increases for the MKR cryptocurrency.

### Protocol

MKR, as a cryptocurrency, is an ERC-20-based token. What this means is that it utilizes Ethereum's protocol in order to function. Furthermore, MKR can also get stored within just about any ERC-20 wallet and is tradeable on a multitude of different exchanges.

### Ledger

Maker (MKR) operates on top of Ethereum and, as such, can be analyzed through its public ledger.

### Smart-Contract Support

Due to the fact that it is built on top of the Ethereum blockchain and uses smart contracts in order to enable its operations, Maker (MKR) does indeed have full smart contract support. They play an important role within the broader ecosystem.

## Tokenomics & Supply Distribution

The initial token that was provided by Maker (MKR) included the following structure and overall distribution.

* 69.50% gets allocated to Founders & Project
* 15.00% gets allocated to the Team
* 4.00% got allocated to Seed Round 1
* 6.00% got allocated to Seed Round 2
* 5.50% got  allocated to Seed Round 3

Furthermore, it is also important to note that MakerDAO originally ended up launching with a supply of 1,000,000 MKR tokens throughout its inception.

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The total number of MKR in existence can also fluctuate, and this is directly dependent on how the system runs. For example, if the total supply of MKR can increase, based on the belief and analysis that the system is running in a deficit, then as a result of this needs to dilute MKR as a recapitalization source.

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However, if the system is maintained and governed well, then the total amount of MKR will decrease due to the fact that MKR gets destroyed in exchange for any excess DAI from the system.

## Team & History

When we look at the team, as well as the history surrounding __[MakerDAO](https://makerdao.com/en/)__, it is important to note it was founded in 2014 in California by the developer as well as entrepreneur known as Rune Christensen.

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Since then, the core management team has increased gradually, and after the first three years of development, MakerDAO launched the stablecoin known as DAI.

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At this time, Rune Christensen chose a group of developers, which was later formalized into the Maker Foundation, a company in the Cayman Islands.

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When we look at its historical funding rounds, initially, $12 million was raised in the Secondary Token Sale which took place on December 16, 2017, and was funded by Andreessen Horowitz and Polychain Capital, which were then joined by Distributed Capital Partners, Scanate, FBG Capital, Wyre Capital, and Walden Bridge Capital, alongside 1confirmation with an average price of $300.

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Then, $15 million got raised in the Secondary Token sale; this occurred on April 23, 2019, and was funded by a16z with an average price of $250.

Furthermore, $27.5 million was raised in the Secondary Token Sale throughout April 2019 by the parties, including Paradigm and Dragonfly capital.

## Activities & Community

When we take a look at the Maker (MKR) community, we need to go over its social media channels.

* There’s the __[MakerDAO Official Discord](https://discord.com/invite/RBRumCpEDH)__, which has over 14,200 members.
* Then there’s the __[MakerDAO Twitter Page,](https://twitter.com/MakerDAO)__ which was over 236,700 followers in total.
* This is followed by the __[MakerDAO Reddit page](https://www.reddit.com/r/MakerDAO/)__, which has over 34,600 members in total.
* Additionally, there is also the __[MakerDAO Telegram Chat](https://t.me/makerdaoOfficial)__, which has over 14,100 members in total.
* MakerDAO also has its own __[YouTube channel,](https://www.youtube.com/MakerDAO)__ which has over 4,120 subscribers.
* There’s also the __[Official MakerDao Forum.](https://forum.makerdao.com/)__

MakerDAO has a healthy community of enthusiasts behind it.

### Development Activity and GitHub Repositories

Maker also has its own __[official GitHub page](https://github.com/makerdao)__ with multiple repositories. Out of them, the most popular ones include:

* __[Multicall](https://github.com/makerdao/multicall)__ - Aggregate multiple constant function call results into one.
* __[Awesome-makerdao](https://github.com/makerdao/awesome-makerdao)__ - A collection of tools, documents, articles, blog posts, interviews, as well as videos related to MakerDAO as well as the DAI stablecoin.
* __[Dss](https://github.com/makerdao/dss)__ - Dai Stablecoin System
* __[Developerguides](https://github.com/makerdao/developerguides)__ - developer guides which can integrate with MakerDAO's smart contracts, SDKs, APIs, products, as well as partners.
* __[Market-Maker-Keeper](https://github.com/makerdao/market-maker-keeper)__ - A framework for Market maker keepers for OasisDEX, EtherDelta, 0x (RadarRelay, ERCdEX), Paradex, DDEX, IDEX, Bibox, Ethfinex, GoPax, HitBTC, TheOcean, OKEX, and Gate.io.
* __[Multicall.js](https://github.com/makerdao/multicall.js)__ - a JavaScript blockchain state management library created for Decentralized Applications (dApps).

### On-Chain Activity

Due to the fact that Maker (MKR) is based on top of Ethereum and, as such, follows the ERC-20 token standard, we can utilize Etherscan as a means of getting an indication as to what kind of performance the cryptocurrency has.

 ![](https://yellow.com/api/storage/v1/object/public/articles/9d467737-f131-4e33-9ee7-14ee6e7c9dc9.png)

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Source: __[Etherscan](https://etherscan.io/token/0x9f8f72aa9304c8b593d555f12ef6589cc3a579a2)__

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Based on Etherscan data, the value of the MKR cryptocurrency is $660.91.

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It has a fully diluted market cap of $646,126,128.63, with a circulating supply market cap of $595,277,267.00.

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There are 90,582 holders of the MKR cryptocurrency and a total of 1,788,837 transfers.

### Activities and Partners

Throughout its history, MakerDAO has undergone numerous different partnerships. In fact, the Maker Foundation has a large history of creating grant programs or just establishing solid partnerships. These are the most notable examples of these partnerships:

* __[The Maker Foundation community grant](https://blog.makerdao.com/maker-foundation-community-grants-provide-funding-for-blockchain-projects/)__ provided funding for blockchain projects, which aimed to bring financial stability as well as transparency within the global economy. Numerous projects got a lot of attention, which were funded through the Maker Grants, such as PoolTogether, Sablier, and the Gas Stations Network (GSN).
* __[DAI was integrated as a payment option on Coinbase Commerce](https://blog.makerdao.com/dai-integrated-as-a-payment-option-on-coinbase-commerce-offering-the-stablecoin-to-millions-via-shopify-woocommerce-and-other-merchants/)__, and at this point in time, the stablecoin was offered to millions of users through Shopify, WooCommerce, and other merchants.
* __[Maker and Dharma also Partnered](http://e)__ to stimulate the meme economy.
* The Maker Foundation also carried out the __[Development Grants Program, where 1,092,581 DAI were awarded across eight nations and between 45 projects.](https://blog.makerdao.com/maker-development-grants-program-sunsets/)__

## References & Reports

### References

* __[MakerDAO Official Discord](https://discord.com/invite/RBRumCpEDH)__
* T__[MakerDAO Twitter Page](https://twitter.com/MakerDAO)__
* __[MakerDAO Reddit page](https://www.reddit.com/r/MakerDAO/)__
* __[MakerDAO Telegram Chat](https://t.me/makerdaoOfficial)__
* __[YouTube channel](https://www.youtube.com/MakerDAO)__
* __[Dai Credit System](https://makerdao.com/whitepaper/DaiDec17WP.pdf)__
* __[MakerDAO GitHub](https://github.com/makerdao)__
* __[Multicall](https://github.com/makerdao/multicall)__ - Aggregate multiple constant function call results into one.
* __[Awesome-makerdao](https://github.com/makerdao/awesome-makerdao)__ - A collection of tools, documents, articles, blog posts, interviews, as well as videos related to MakerDAO as well as the DAI stablecoin.
* __[Dss](https://github.com/makerdao/dss)__ - Dai Stablecoin System
* __[Developerguides](https://github.com/makerdao/developerguides)__ - developer guides that can integrate with MakerDAO’s smart contracts, SDKs, APIs, products as well as partners.
* __[Market-Maker-Keeper](https://github.com/makerdao/market-maker-keeper)__ - A framework for Market maker keepers for OasisDEX, EtherDelta, 0x (RadarRelay, ERCdEX), Paradex, DDEX, IDEX, Bibox, Ethfinex, GoPax, HitBTC, TheOcean, OKEX, and Gate.io.
* __[Multicall.js](https://github.com/makerdao/multicall.js)__ - a JavaScript blockchain state management library created for Decentralized Applications (dApps).
* __[Maker Foundation Community Grants Provide Funding for Blockchain Projects](https://blog.makerdao.com/maker-foundation-community-grants-provide-funding-for-blockchain-projects/)__ – Official MakerDAO Blog
* __[Dai Integrated as a Payment Option on Coinbase Commerce, Offering the Stablecoin to Millions via Shopify, WooCommerce, and Other Merchants](https://blog.makerdao.com/dai-integrated-as-a-payment-option-on-coinbase-commerce-offering-the-stablecoin-to-millions-via-shopify-woocommerce-and-other-merchants/)__ – Official MakerDAO Blog
* __[The “Bailout” for Everyone Else—Maker and Dharma Partner to Stimulate the Meme Economy](https://blog.makerdao.com/the-bailout-for-everyone-else-maker-and-dharma-partner-to-stimulate-the-meme-economy/)__ – Official MakerDAO Blog
* __[The Maker Foundation Development Grants Program Sunsets](https://blog.makerdao.com/maker-development-grants-program-sunsets/)__ – Official MakerDAO Blog
* __[MakerDAO](https://makerdao.com/en/)__ Official Website
* __[Official MakerDao Forum](https://forum.makerdao.com/)__
* __[Maker Protocol 101 - Official Documentation](https://docs.makerdao.com/getting-started/maker-protocol-101)__
* __[Decentralized Applications (dApps): Definition, Uses, Pros & Cons](https://www.investopedia.com/terms/d/decentralized-applications-dapps.asp)__
* __[What Are Smart Contracts on the Blockchain and How They Work](https://www.investopedia.com/terms/s/smart-contracts.asp)__
* __[Ethereum (ETH)](https://ethereum.org/en/)__ - Official Website
* __[collateralized debt position (CDP)](https://docs.makerdao.com/build/dai.js/single-collateral-dai/collateralized-debt-position)__ - Official Documentation

### Market Research

* __[TradingView](https://www.tradingview.com/symbols/MKRUSD/)__
* __[Etherscan](https://etherscan.io/token/0x9f8f72aa9304c8b593d555f12ef6589cc3a579a2)__

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Maker (MKR)

Decentralized Finance (DeFi) tokens providing financial infrastructure to democratize financial transactions.

DeFi

Top DeFi Tokens by Market Capitalization

Ecosystems

Top Ecosystem token by Market Cap

Governance

Governance & Business platform

MKR is a cryptocurrency depicted as a smart contract platform and works alongside the Dai coin and aims to act as a hedge currency that provides traders with a stable alternative to the majority of coins currently available on the market. Maker offers a transparent stablecoin system that is fully inspectable on the Ethereum blockchain. Founded almost three years ago, MakerDao is lead by Rune Christensen, its CEO and founder. Maker’s MKR coin is a recent entrant to the market and is not a well known project. However, after today it will be known by many more people after blowing up 40% and it is one of the coins to rise to prominence during the recent peaks and troughs.

After being developed by the MakerDAO team, Maker Dai officially went live on December 18th, 2017. Dai is a price stable coin that is suitable for payments, savings, or collateral and provides cryptocurrency traders with increased options concerning opening and closing positions. Dai lives completely on the blockchain chain with its stability unmediated by the legal system or trusted counterparties and helps facilitate trading while staying entirely in the world of cryptocurrencies. The concept of a stablecoin is fairly straight forward – it’s a token that has its price or value pegged to a particular fiat currency. A stablecoin is a token (like <a href="https://www.coingecko.com/en/coins/bitcoin">Bitcoin</a> and <a href="https://www.coingecko.com/en/coins/ethereum">Ethereum</a>) that exists on a blockchain, but unlike Bitcoin or Ethereum, Dai has no volatility.

MKR is an ERC-20 token on the Ethereum blockchain and can not be mined. It’s instead created/destroyed in response to DAI price fluctuations in order to keep it hovering around $1 USD. MKR is used to pay transaction fees on the Maker system, and it collateralizes the system. Holding MKR comes with voting rights within Maker’s continuous approval voting system. Bad governance devalues MKR tokens, so MKR holders are incentivized to vote for the good of the entire system. It’s a fully decentralized and democratic structure, then, which is an underutilized USP of blockchain tech.

Value volatility is a relative concept among both cryptos and fiat currencies. The US dollar, for example, was worth 110.748 yen on July 9, 2018. On July 4, 2011, $1 was worth 80.64 yen, and on March 18, 1985, $1 was worth 255.65 yen. These are major differences in exchange rates, and inflation within each country makes each currency worth different values even when compared to themselves. One USD in 1913 is worth the equivalent of $25.41 today, and even $1 in 1993 is worth the equivalent of $1.74 today. Stablecoins don’t negate these basic economic principles of value. Instead, both Tether and Dai have values pegged to the U.S. dollar. This is done to stabilize the price.