Maker Price Today - MKR Live Charts

Overview: What Is Maker (MKR)?

Maker (MKR) is the native governance token of MakerDAO. It manages the Maker Protocol and the DAI (DAI) stablecoin. Maker is an Ethereum ERC-20 token.

MakerDAO was launched in December 2017 by Rune Christensen and the Maker Foundation, formed in 2018 to support the platform and the protocol.

The purpose of MakerDAO and the Maker Protocol, an open-source platform on Ethereum, is to enable the DAI (DAI) stablecoin and provide an unbiased currency and a stable, decentralized store of value for transactions.

What Makes Maker (MKR) Coin Unique?

MakerDAO has a novel two token system. The developers created Maker to support the stability of MakerDAO’s stablecoin DAI and enable governance for MakerDAO, DAI, and the DAI Credit System. MKR holders make key decisions relating to the platform and its future.

The DAI stablecoin is an alternative to volatile cryptocurrencies. However, unlike other stablecoins that stabilize their price by being backed with fiat reserves or physical assets, Maker keeps its partner stablecoin at the same value as $1.

The Maker ecosystem has over 400 apps and services. Investors include Andreessen Horowitz, Polychain Capital, and Wyre Capital.

What Is Maker (MKR) Used for?

Maker is bought, sold, and traded as an asset. However, its primary purpose is to manage the Maker Protocol and DAI stablecoin. Maker can be created and burned in response to DAI price fluctuations to maintain DAI’s value of $1.

Holders of Maker can vote in MakerDAO and are incentivized to vote in a way that benefits the ecosystem and ensures its success. Maker holders can vote on adding new collateral, changing the DAI savings rate, system upgrades, emergency shutdowns, governance mechanisms, and more.

How Does Maker (MKR) Work?

The DAI stablecoin is created when a user locks another cryptocurrency, like Ethereum, into the platform and essentially takes out a loan in DAI. Users can return the DAI in return for the other cryptocurrency. However, there is a risk that the crypto can be sold if its value falls below a certain level.

Maker (MKR) keeps DAI at a value of $1. Maker holders can vote to decide the DAI Savings Rate, the amount DAI holders earn if they save DAI on the platform. If the price of DAI rises above $1, MKR holders should vote to decrease the savings rate, reduce demand, and bring the DAI price back to $1. The reverse is also true. If the value of DAI falls below $1, MKR holders are expected to vote to increase the DAI Savings Rate. This increases demand, causing the DAI price to rise to $1.

MakerDAO collects fees from users who lock up crypto balances to generate DAI. If the fees exceed a certain amount, Maker auctions the extra DAI, which must be bought with MKR in a “Surplus Auction.” After the sale, the resulting Maker is destroyed, reducing the supply and raising the price of MKR. Again, the reverse is also true. A deficit of DAI collateral where the locked coins are sold for a value lower than their original value results in a “Debt Auction.” In a Debt Auction, Maker is created and auctioned for DAI. The MKR supply is increased, and the price falls.

If MKR holders vote towards the benefit of the system, the outcome is more fees, which results in MKR being destroyed and the MKR price rising.

How Is the Price of Maker Determined?

Market factors alone do not determine the Maker price. Maker  is influenced by the votes of Maker holders and MakerDAO’s mechanism to protect the $1 value of DAI. MKR should increase in value as the Maker Protocol and DAI stablecoin use increases. The supply of MKR is reduced when the Maker system works, increasing the Maker price.

The following factors influence the price of Maker :

• Supply, demand, and scarcity
• The destruction or creation of Maker in the MakerDAO platform.
• Liquidity
• Maker market sentiment
• Wider cryptocurrency market sentiment
• MakerDAO and DAI performance and use
• Maker voters
• The use and price of DAI
• Competing cryptocurrencies and blockchains

What Is the Maker (MKR) Coin Price Prediction for 2030?

It’s almost impossible to predict the future price of any cryptocurrency accurately, but there are numerous Maker price predictions for 2030.

CoinCodex predicts the Maker price in 2030 will be between $1,762.91 and $4,642.04. Binance expects around $2,053.91, and DigitalCoinPrice is bullish at over $14,000.

How Is the Maker Network Secured?

Maker is an Ethereum ERC-20 token, so it is secured through the consensus mechanism of the Ethereum blockchain.

Where Can You Buy Maker (MKR)?

MKR can be bought, sold, and traded on Binance, Coinbase, KuCoin, Kraken, Bitstamp, and many other cryptocurrency exchanges. It’s also available on the decentralized exchange Uniswap.

How Can You Store Maker ?

As an ERC-20 token, Maker can be stored in any Ethereum-compatible hot or cold wallet. The safest method of storing cryptocurrency is a cold wallet or hardware device such as Ledger or Trezor.

FAQs

Is MKR a good investment?

Investors will decide if Maker (MKR) is a good investment based on thorough research of the token, the MakerDAO platform, and the cryptocurrency market. As cryptocurrencies can be incredibly volatile and high-risk, investors must be vigilant of their risk tolerance and only invest what they can afford to lose.

Who is the owner of Maker cryptocurrency?

MakerDAO was created in 2014 by Danish entrepreneur Rune Christensen, and the DAI stablecoin and Maker (MKR) governance coin was launched on the Ethereum network in 2017. MakerDAO is a decentralized autonomous organization (DAO) governed by MKR holders and platform participants.

Is Maker a stablecoin?

Maker (MKR) is not a stablecoin. The purpose of MKR is to manage the Maker Protocol and DAI stablecoin. MKR voters make decisions, and Maker (MKR) can be created and destroyed in response to DAI price fluctuations to maintain DAI’s value of $1.

Why buy MKR?

MKR can be bought as an investment, traded, or used to enable participation in the MakerDAO protocol and for governance of the DAI stablecoin, which can reward MKR holders.

What can I do with MKR?

Holders of MKR can choose to participate in the governance of the Maker protocol and MakerDAO. MKR holders are expected to vote on decisions that regulate the DAI stablecoin’s price and the ecosystem’s future.

What is the Maker protocol?

The Maker protocol uses a combination of cryptocurrencies, Maker (MKR) and DAI (DAI), to manage the DAI stablecoin, keeping its value at $1.

How many Maker tokens are there?

The number of MKR tokens in circulation fluctuates. However, there is a maximum supply of 1,005,577 tokens. MKR can be created and destroyed as part of the Maker protocol and MakerDAO.

What is the price prediction for Maker 2030?

CoinCodex predicts that the MKR price in 2030 will be between $1,762.91 and $4,642.04. Binance expects around $2,053.91. Other analysts share higher and lower predictions.