What Is Maker (MKR)?
Maker (MKR) is a stablecoin that’s tethered to the price of Ethereum, instead of a fiat currency like USD. The MKR token is tied to Ethereum and created/destroyed based on ETH’s price relative to USD. This stabilized the price of DAI between $0.98 and $1.02 at any given moment. Stablecoins are seen as a way to protect crypto investments from one of the most volatile investment markets on the planet.
Who Is Maker/DAI?
Maker DAI was created in 2015 and is still maintained and operated by MakerDAO. CEO Run Christensen has the reigns after CSO Phil Potter stepped down from both Maker and Tether in June 2018, following allegations of price manipulation involving Tether and Bitcoin.
Use Cases of Maker/DAI
Maker DAI’s entire point of existence is as a stablecoin. No matter how much the USD and ETH prices fluctuate in relation to each other, DAI will always hover around $1. This makes it easier to create long-term crypto products and services, as you don’t have to worry about the market wiping out any possible gains from something like gambling.
How to Mine MKR/DAI
Neither MKR nor DAI can be mined. They can only be purchased on a cryptocurrency exchange. Purchasing DAI is done by converting ETH to wrapped ETH (W-ETH), which essentially holds it in escrow and syncs the balance to your DAI.
Learn More About Maker/DAI
If you want to learn more about Maker/DAI, I wrote a full coin intro guide at Crypto Briefing. Or you can learn more about other cryptocurrencies across Thought for Your Penny.