Question

what is Maker

Answer 1

Maker (MKR) on CoinMarketCap is the governance token of the MakerDAO and Maker Protocol. Let’s dive into the details:

1. MakerDAO and Maker Protocol:

   • MakerDAO is a decentralized organization, and the Maker Protocol is a software platform, both built on the Ethereum blockchain.
   • Together, they allow users to issue and manage the DAI stablecoin.
   • DAI is a community-managed decentralized cryptocurrency with a stable value pegged to the US dollar.

2. MKR Token:

   • MKR tokens serve as voting shares for the organization managing DAI.
   • While they don’t pay dividends, MKR holders have voting rights over the development of the Maker Protocol.
   • MKR’s value is expected to appreciate based on DAI’s success.

3. Unique Propositions:

   • Governance: MKR holders directly participate in governing DAI.
   • Voting Power: The size of their MKR stake determines their voting power.
   • Protocol Decisions: MKR holders vote on aspects like adding new collateral assets, adjusting risk parameters, and choosing oracles.

4. Early DeFi Pioneer:

   • Maker is one of the earliest projects in the decentralized finance (DeFi) scene.
   • DeFi aims to build financial products on smart-contract-enabled blockchains like Ethereum.

Learn more about Maker on the official website1.