What Is Maker?
Maker (MKR) is the eponymous token of the platform behind DAI. DAI is a stablecoin anchored at the price of the dollar (1 USD equals 1 DAI) while the function of the MKR is to create or destroy tokens to keep the price around $1 if it rises or falls. The MKR token functions as a pillar of the platform to pay fees to and vote on the DAI risk parameters.
The biggest difference between Maker and other stablecoins is transparency. It uses smart contracts on the Ethereum blockchain to secure assets and is backed by ETH instead of fiat currency. Both the cryptocurrency and the backup are under the security and effectiveness of the blockchain, allowing the user quick access to information.
Pros and Cons of Maker
- These coins have a stable character. They are less volatile and therefore easier for long-term financial planning. Currently, the uptrend and the growing confidence of investors and users in Dai suggest that the price of Maker will continue to grow.
- The future of the Maker is hopelessly tied to Dai's evolution and future. Since we are dealing with tokens integrated into the Ethereum network, the future of the Maker platform as a whole will not only depend on its own evolution but also on the future of Ethereum in the markets. Maker is a newly created system, with which it will be necessary to see if it works and if it maintains the famous 1: 1 parity with the dollar.