Maker Coin Exchanging to EtH in 2021: How to Get a MKR in Your Wallet?
Although cryptocurrency has long been popular in the world, there are people who do not trust it, because they consider it to be an empty shell, not backed up by real financial assets (as is the case with fiat money). Rune Christensen, together with like-minded people, solved this problem, however, to stabilize the rate, it was necessary to create a Maker token (MKR). From this article, you will find out what it is, how it differs from other cryptocurrencies, and whether you can trust it.
Where to buy MKR and how to store
The coin is traded on many cryptocurrency exchanges, and the main pairs are: MKR / BTC, MKR / ETH, MKR / USDT and MKR / USD.
The most popular platforms for buying and selling MKR are: Binance (MKR / USDT – 8.81% of total trading volume), Coinbase (MKR / USD – 7.68%), Huobi (MKR / USDT – 4.68%) …
And since Maker’s cryptocurrency is an ERC-20 token, it can be stored on the most popular cryptocurrency wallets that support this format, i.e. on mkr to eth wallets. Some common options are MyEtherWallet, MetaMask, Mist, or Exodus. These tokens can also be stored on Ledger and Trezor hardware wallets, making them more secure than hot wallets.
What is MKR cryptocurrency
In 2017, as a result of 2 years of work on the project, the DAI stablecoin appeared – a stablecoin pegged to the US dollar. In order for the Dai rate to always be equal to 1 US $. It was the Maker platform, or rather, MakerDAO (DAO – Decentralized Autonomous Organization). Stablecoin was implemented based on the Ethereum blockchain. The Maker (MKR) cryptocurrency was released to match Dai’s objectives. Thus, 2 types of tokens are issued on the Maker platform:
- Give (main);
- MKR (providing).
The following tasks were assigned to the MKR token:
- Act as a means of payment when paying commissions related to the turnover of the main cryptocurrency.
- To enable token holders. Let them manage their own wealth.
- Attract investment to the project.
- Ensure the continued solvency of MakerDAO.
In the process of redeeming Dai, you need to pay a commission for the operation, here the MKR cryptocurrency comes into play, since the use of other currencies is not provided. The result of this event is the withdrawal of the used Maker coins from the turnover, i.e., burning, which increases the rate. Any token holder has the right to submit a proposal for better governance. The resulting solution to the success of the project, the profit is divided between the holders, the message, the losses will be distributed among themselves. The decisions of the majority of votes, and the voters become interested in the adoption of ideas that are beneficial to them. In order to avoid abuse or intrigues of competitors, the developers of the system of penalties for the fact that the holder votes contrary to the interests of the system.
By purchasing MKR coins, buyers provide additional additional sources of funding. Completion of the 4th task is due to the fact that the person who wants to buy Dai, in fact, borrows them from the system. This creates a CDP (secured debt position) – a secured debt position, i.e. a smart contract. The smart contract allows you to keep the Dai rate at the level of $ 1 when they are generated in the right amount and burn out when they return to the system. This avoids inflation and sharp fluctuations in the exchange rate. However, if the holders of Maker coins voted rashly and there is a collapse, the system is programmed to automatically release them into circulation to ensure the reliability of the CDP and the solvency of the Maker project. The MKR rate is subject to fluctuations (is volatile), this will cause it to fall instant cryptocurrency exchange – Letsexchange, which means it will lead to losses for holders.