What Is Maker and How to Buy MKR Tokens?

In our commitment to continually broaden our offerings, we are introducing a new project addition: Maker Protocol. The Maker Protocol is a decentralized platform on the Ethereum blockchain that allows users to generate Dai, a stablecoin pegged to the US dollar. 

In this article, we will explore the Maker Protocol, discussing how it works along with its native token, MKR. We will examine the MKR token's utilities, its tokenomics, statistics, and the features of the Maker Protocol. Finally, we will conclude by providing a step-by-step guide on how to purchase MKR.

What Is Maker?

The Maker Protocol is an open-source Decentralized Autonomous Organization (DAO) established on the Ethereum blockchain. It is governed by MKR token holders globally through scientific governance mechanisms. This allows users to create cryptocurrency and pioneer decentralized finance (DeFi) by managing the Dai stablecoin, Collateral Vaults, Oracles, and Voting in a transparent and efficient manner.

The Maker Protocol operates under the governance of MKR holders worldwide, who exercise decision-making authority through mechanisms such as Executive Voting and Governance Polling. What sets the Maker Protocol apart is its commitment to scientific governance, which ensures system stability, transparency, and efficiency. The weight of a voter's decision in this governance structure is directly proportional to the quantity of MKR tokens they stake in the DSChief voting contract. In essence, the more MKR tokens a voter locks in the contract, the greater their influence on the Maker Protocol's management and financial risk mitigation for Dai.

MakerDAO, a decentralized autonomous organization overseeing the Maker Protocol, plays a pivotal role in determining parameters like stability fees and collateral types/rates through the collective voting power of MKR holders. This decentralized approach to decision-making sets MakerDAO apart as a groundbreaking decentralized finance (DeFi) application. As one of the largest decentralized applications on the Ethereum blockchain, the Maker Protocol holds the distinction of being the first DeFi application to gain widespread adoption, signaling a transformative shift in the financial landscape.

The Maker Protocol is unique because it is developed collaboratively, involving a diverse group of contributors, including developers from the Maker Foundation, external partners, and different entities. This approach highlights a decentralized and inclusive way of creating new financial ideas and solutions. The management of the protocol by a global network of MKR holders showcases a commitment to decentralization, giving participants worldwide the opportunity to contribute to the governance and evolution of the Maker Protocol.

What Is MKR Token?

The Maker Token (MKR) is the utility token of the Maker Protocol. MKR serves two critical functions:

1. Governance: MKR token holders act as shareholders, allowing them to vote and shape the development of the Maker Protocol. This empowers the community to collectively govern the system, fostering transparency, adaptability, and community-driven growth.
2. Stability Mechanism: MKR plays a crucial role in maintaining the stability of the Dai stablecoin. If the system's debt exceeds its surplus, MKR tokens are minted through a Debt Auction, recapitalizing the system and ensuring Dai remains close to its $1 peg. This incentivizes MKR holders to act responsibly and promote the stability of the entire Maker ecosystem.

Beyond these core functionalities, MKR offers several other benefits:

• Collateralization: MKR acts as collateral for the entire MakerDAO system, providing security and stability for users interacting with Dai.
• Emergency Shutdown: MKR holders hold the power to trigger an emergency shutdown, settling outstanding debts and liquidating collateral in extreme scenarios, ensuring system stability even in unforeseen circumstances.
• Potential for Value Appreciation: MKR tokens are expected to appreciate in value as the Maker Protocol and Dai gain wider adoption and usage, creating an additional incentive for participation in the ecosystem.

In essence, MKR is the key to unlocking the full potential of the Maker Protocol, enabling a decentralized and community-driven approach to stablecoin creation and management. Its unique combination of governance power, stability mechanism, and collateralization features makes it a critical component of the DeFi ecosystem.

MKR Tokenomics

MKR Statistics

Token Symbol: MKR

Market Capitalization: $1.3 Billion

Total Supply: 918,769 MKR

Circulating Supply: 977,631 MKR

Trading Price: $1,440

Features of Maker Protocol

The Maker Protocol offers a range of features, including:

1. Scientific Governance Mechanisms: The Maker Protocol employs scientific governance mechanisms, including Executive Voting and Governance Polling, allowing MKR token holders to actively participate in decision-making.
2. Decentralized Autonomous Organization (DAO): The Maker Protocol operates as a decentralized autonomous organization (DAO) on the Ethereum blockchain. This means that MKR token holders globally collectively govern the protocol, fostering transparency, adaptability, and community-driven growth.
3. Collateral Vaults: The Maker Protocol features Collateral Vaults, where users can lock assets as collateral to generate Dai stablecoins. This collateralization mechanism adds security and stability to the system, supporting the creation and management of Dai.
4. Oracles: Oracles play a crucial role in the Maker Protocol by providing real-world data to the system. This ensures accurate and up-to-date information, particularly regarding collateral prices, influencing decision-making within the protocol.
5. Voting Power Proportional to MKR Holdings: MKR token holders exercise voting power in proportion to the quantity of MKR tokens they stake in the DSChief voting contract. This feature ensures that those with a higher stake have a greater influence on the Maker Protocol's management and financial risk mitigation for Dai.
6. Collaborative Development Process: The Maker Protocol stands out for its collaborative development process, involving a diverse group of contributors such as developers from the Maker Foundation, external partners, and various entities.

These features collectively foster transparency, stability, and efficiency, making MakerDAO a pivotal player in the DeFi ecosystem.

How to Buy and Trade MKR Tokens?

CoinEx is a global cryptocurrency exchange trusted by over 5 million users worldwide, with 100% reserves. With support for 700+ tokens, including MKR, users can easily and seamlessly trade on the platform. To purchase MKR cryptocurrency on CoinEx, follow the steps below:

1. Create an Account: Sign up for a CoinEx account via the CoinEx web app or mobile application.
2. Deposit Funds: After logging in, deposit funds into your CoinEx account using any supported cryptocurrencies or deposit methods available on the exchange. Having funds in your account enables you to execute trades seamlessly.
3. Navigate to MKR Trading Page: Once your account is funded, go to the dedicated MKR trading page on CoinEx. You can find a search box and enter the term "MKR" to swiftly locate the trading pair associated with MKR tokens.
4. Choose a Trading Pair: Select the desired trading pair that matches MKR with another cryptocurrency. For instance, you may choose MKR/USDC if you wish to trade USDC for MKR.
5. Specify the Purchase Amount: Determine the quantity of MKR tokens you want to purchase. Input the amount in the trading interface, which will calculate the corresponding cost based on the current market price.
6. Execute the Trade: With the specified amount, proceed to execute the trade. Confirm the details, and if you are satisfied, submit the order.

By following these comprehensive steps, you can easily trade MKR tokens on CoinEx, taking advantage of the available trading pairs.