Maker Blockchain Project and Makercoin token
Maker is an Ethereum based blockchain project with a dual coin system that put as its cornerstone the idea of creating a decentralized non-volatile cryptocurrency. One of the currencies is called Makercoin, ticker symbol MKR. It is a utility coin that is employed for paying the system fees, such as when you create a CDP (collateralized debt position) smart contract, but more on that later.
MKR as Governance Coin and Recapitalization Resource
Makercoin is also utilized as a governance token on the Maker system. Every holder of an MKR token can take part in voting for Maker eco-system development propositions and even can propose one.
Besides its governance purposes, MKR also plays an essential role as the recapitalization resource for the crisis management situations. In such instances, the system automatically creates new MKR tokens and sells them on the market to cover the shortfall expenses.
Briefly About Non-volatile Dai and CDP Smart Contracts
Another system’s altcoin is called Dai, and it is exchanged at the rate of 1:1 with USD. Dai can be bought on exchanges, or it can be loaned by creating a CDP Smart Contract where you put your Ethers as collateral. Find out more about CDP in the respective Dai coin page.