Maker Price

What Is Maker (MKR)?

There are two components to the Maker ecosystem: MakerDAO, a decentralized autonomous organization that’s built on the Ethereum blockchain, and Maker Protocol, a software platform. While MakerDAO is responsible for issuing the Dai stablecoin (symbol: DAI), and facilitates collateral-backed loans without an intermediary, Maker Protocol allows users to vote on changes to the Maker ecosystem. 

The team behind Maker aims to create a stablecoin that's less volatile than other cryptocurrencies. To do this, they use a system of attractive interest rates and collateral requirements to incentivize users to hold onto the coin. In addition, the Maker team has developed a smart contract platform called MakerDAO, which allows users to collateralize their ETH and create Dai, a cryptocurrency pegged to the U.S. dollar.

Maker Protocol's native currency is called MKR, which is also the token used on MakerDAO to stabilize the value of Dai. The organization achieves price stability by adjusting the incentives for borrowing and holding Dai according to market conditions. 

Maker Price (MKR)

Since MKR’s launch in 2017, its price has generally trended upward. Looking at its price chart, MKR remained fairly stable up until January 2021. It recorded its first significant increase in February 2021, then a second noteworthy jump in April 2021. Mid-2021 was when MKR's price peaked, with the value of each token soaring to an ATH of $6,292.31 in May 2021.

As of October 25, 2022, one MKR is worth around $940. Recently, MKR has shown some bullish momentum, and could continue to rise in value as the Dai stablecoin becomes increasingly popular.

The value of MKR has grown significantly since its launch. This can be attributed to the success of the Dai, as well as an overall increase in public interest in cryptocurrencies.

What Is MKR Used For?

MKR is used for a wide range of purposes:

1. To govern the Maker Protocol: MKR token holders can vote on protocol parameters, such as the stability fee. MKR can also be used to upgrade or replace the smart contracts which govern the system.

2. As collateral: MKR is one of the accepted forms of collateral on the Maker Protocol platform. This means that users who lock up MKR can generate Dai.

3. To pay fees: When users generate Dai or interact with Maker Protocol in other ways, they must pay a small fee in MKR. These fees are used to mint new MKR tokens, which are then sold on the open market to cover operational expenses.

4. To hedge against Dai price volatility: Since MKR isn’t pegged to any fiat currency or cryptocurrency, it can be used to hedge against fluctuations in the value of Dai.

5. As a store of value: Some users believe that MKR will increase in value over time as Maker Protocol grows in popularity and usage. As such, it can be viewed as a good long-term investment and/or store of value.

MKR Tokenomics

At launch, MKR had a total supply of 1 million tokens. According to CoinGecko, the current circulating supply is just over 900,000.

Here's how the MKR tokens were distributed in its initial token launch:

69.50%: Founders & Project

15.00%: Team

4.00%: Seed Round 1

6.00%: Seed Round 2

5.50%: Seed Round 3

Who Is the Founder of MakerDAO? 

MakerDAO was founded by a team of developers and entrepreneurs based in Switzerland, including Gustav Arentoft (Business Development, Europe), Rune Christensen (CEO) and Andy Milenius (CTO).

How to Store MKR

MKR can be stored in various cryptocurrency wallets, including popular wallets such as MetaMask, MyEtherWallet and Trust Wallet. As a rule of thumb, cold wallets (hardware wallets) tend to be more secure, and therefore less susceptible to attacks than hot wallets (software wallets).