Maker (MKR) is among the largest DApps and runs atop the Ethereum blockchain. The Maker Protocol was initially founded by a group of developers and the governance is controlled by MakerDAO.

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MKR token holders participate in staking MKR tokens to receive voting rights in governance proposals that affect the protocol, the DAI stablecoin, and the project as a whole.
MKR has quickly grown to become one of the most influential protocols in the blockchain space – the MKR token is currently the 64th largest cryptocurrency in the world by market cap.
How Maker (MKR) Works
Maker protocol is one of the first examples of successful DeFi projects that are run by a DAO. The Maker protocol allows users to mint DAI if they provide sufficient collateral from one of the protocol-accepted Ethereum (ERC20) tokens.
Essentially, MKR holders vote on which tokens should be allowed to be used as collateral for minting DAI. MKR holders receive voting rights, proportionate to the amount of MKR tokens they hold.
What makes Maker protocol unique to traditional institutions is the fact that it is unbiased. Any user, with sufficient collateral, can loan DAI if they provide sufficient collateral for the DAI they want to mint (generate DAI).
No institutional or private company intermediary is used and the MakerDAO facilitates the entire process with the use of smart contracts and decentralized governance. Individuals can have a better look into the Maker foundation and Maker protocol by reading the whitepaper.
Additionally, DAI holders can earn interest by using the Maker platform – this varies according to the current Dai Savings Rate.
Upon the approval of an Ethereum-based token for collateral in the Maker Vaults, the DAO is tasked with voting on the specific parameters for the token’s risk. The assets risk profile is assessed and the following risk parameters are considered:
The Debt Ceiling – Certain crypto assets are permitted varying maximum amounts of debt that can be created. Upon the reaching of this ”ceiling”, no more DAI will be minted by the vault until a portion or all of the debt is repaid.
The Stability Fee – The retrieval of collateral from a smart contract requires a stability fee that must be paid in DAI. The generation of DAI affects the annual percentage yield that is accrued.
The Liquidation Ratio – This is simply a reflection of what the expected price volatility for a particular cryptocurrency asset is. The MakerDAO is tasked with deciding the ratio.
The Liquidation Penalty – Vaults debt accrues additional fees if liquidation takes place.
Dai is currently the world’s 5th largest stablecoin and MKR token holders can control decisions that affect the future of DAI. The voting rights associated with holding DAI tokens, continue to increase the demand for MKR governance tokens.
What Is Maker (MKR) Used For?
The Maker system is tasked with managing the DAI stablecoin through the MakerDAO governance system.
The MKR token plays an integral part in how the protocol operates, what Ethereum-based tokens are accepted as collateral, risk parameters surrounding assets used as collateral, and the minting of DAI tokens.
Essentially, the main use of Maker tokens is to have voting rights in the Maker protocol – similar to how shareholders have voting rights for proposals that take place in a traditional company.
When governance proposals arise, MKR holders receive one vote per MKR token that they hold. It’s important to note that the decision’s acceptance or refusal is dependent on the number of MKR tokens that are committed to a proposal (not the amount of MKR holders there are).
The Maker ecosystem continues to see extensive growth which has resulted in a positive effect on the Maker price.
Where To Buy Maker (MKR) Tokens
Maker (MKR) tokens are frequently traded on most centralized and decentralized exchanges. The cryptocurrency has become a popularly traded asset and has seen significant price fluctuations since its inception.

- 350+ Cryptocurrencies Listed
- <0.10% Transaction Fees
- 120 million Registered Users
- Secure Asset Fund for Users
- Earn On Deposits

- US Based
- Start with as little as $10
- Buy and sell 200+ cryptocurrencies
- Pro Solution for larger traders
- Available in 190+ countries
MKR tokens are available to purchase on most centralized crypto exchanges. Before you’re able to purchase MKR, you’ll need to deposit fiat money onto an exchange, and sequentially MKR tokens will be credited to your MKR digital wallet on the exchange.
The crypto exchanges below are frequently used exchanges where you can buy, sell and store MKR tokens.
Popular crypto exchanges include:
The abovementioned exchanges allow users to easily buy, sell, transfer and store MKR tokens in a digital wallet on the specific exchange. You can use your debit or credit card to purchase MKR tokens on centralized exchanges.
Individuals can transfer their MKR tokens from an exchange to a hardware or software wallet for enhanced security. Individuals will need to select a MKR compatible wallet– this will allow them easy access to the MKR protocol where they can participate in various DeFi products on the platform.
FAQs About Maker (MKR)
How long has Maker (MKR) existed?
Rune Christensen and a group of developers created Maker Protocol in 2015. The group sequentially became the Maker Foundation, a company registered in the Cayman Islands. In 2017, $12 million was raised by the Maker team after selling MKR tokens to one of the largest VC firms in the world, Andreessen Horowitz, as well as others.
The Maker ecosystem is currently valued at more than $14 billion in TVL.
What’s controversial about Maker (MKR)?
The number of emerging projects in the crypto space is at an all-time high. There are thousands of projects across sectors such as NFT projects, Layer-1 protocols, Metaverse Projects, and many more. Unfortunately, not all of these projects are as credible as they claim to be.
The crypto space experiences its fair share of scam projects that are referred to as “rug pulls”. These scam projects often sound revolutionary but the team is falsely advertising the project, and retail investors are the ones that end up on the losing side. It’s important to do extensive research.
Let’s take a look at the top two controversies surrounding Maker (MKR):
- Ethereum-based – One of the most frequently discussed points surrounding the Maker protocol is that the DeFi project is based on Ethereum. In recent years, the sentiment surrounding the Ethereum network has become considerably negative at times. The network becomes easily congested and isn’t able to adequately handle the processing of transactions during periods of high network activity.This ends up costing retail traders ludicrous amounts in gas fees when using the Ethereum network. Many emerging projects have opted to use faster, more secure, and more affordable blockchains for the deployment and facilitation of their DApps. The average price of gas fees makes using the Ethereum network unappealing.
- Crypto assets permitted for collateral are restrictive – The Maker protocol currently has a limited amount of Ethereum-based tokens that are permitted to be used as collateral for minting DAI. The community is tasked with voting for which cryptocurrencies are accepted, and what their varying risk parameters will be.The limited number of ERC20-based cryptocurrencies that can be used for collateral is a cause for concern for many individuals. Many users expect a larger variety of crypto assets and believe that this would bolster revenue generation and user adoption for the Maker platform.
How many Maker (MKR) tokens are there?
At the time of writing, MKR has a circulating supply of 977,631.04 MKR.
The total supply of Maker (MKR) is 977,631.
The max supply of Maker (MKR) is 1,005,577
Can Maker (MKR) be mined?
MKR is not a mineable cryptocurrency. MKR is a governance token and it is unmineable.
Some centralized exchanges also offer rewards for individuals that stake their MKR tokens on the exchange.
What is the market cap of Maker (MKR)?
The market cap of Maker (MKR) is: the total amount of coins in circulation x the current market price of Maker (MKR).
Maker (MKR) Market Cap = 977,631.04 MKR x $1,053 = $1,03 billion (64th largest market cap).
The Maker platform continues to grow both in TVL and the number of daily users. The cryptocurrency Maker (MKR) has seen extreme price fluctuations in recent months.
Biggest Competitors Of Maker (MKR)
When considering the competitors of MKR it is important to understand that the Maker protocol is tasked with controlling the DAI stablecoin.
Community members participate in governance proposals that affect DAI in various ways. The DAI cryptocurrency is backed by ERC20-based crypto assets, making it unique from other stablecoins that are backed by fiat assets.
There has been a significant amount of concern surrounding how DAI achieves its soft-peg to the dollar. Many believe that the algorithm used is risky and may result in a de-pegging.
The adoption of DAI and its success is directly linked to the success of the Maker protocol.
Maker’s competitors are:
What Are The Future Plans For Maker And MKR Token?
The Maker foundation has announced its intention to grow the Maker ecosystem, increase user adoption, and continue building value. Maker already has one of the largest ecosystems by TVL.
The team is focused on dominating its sector and providing users with real-world valuable DApps.
Pros And Cons Of Maker and MKR Token
Pros:
- 5th largest stablecoin – DAI is among the biggest stablecoins in the world.
- Rewards – Users can earn yields on their tokens on the Maker platform.
- Non-discriminatory – Any user can use the Maker platform – it’s unbiased.
Cons:
- Ethereum-based – The Ethereum network is costly and easily congested.