Personally I love this project. I saw in this project a real decentralization and a future for decentralized finance.
Offering a viable and stablecoin substitute for Tether, Maker is a smart contract platform that controls and sells Dai. Decentralized and without trusted third parties, the Maker platform stabilizes the value of the Dai against the US dollar using external market mechanisms and economic incentives. Eliminating the need to rely on centralized organization and the hassle of third-party audits, Maker offers a transparent stablecoin system that is fully inspectable on the Ethereum blockchain.
The Maker platform has two currencies: Makercoin (MKR, A token with a volatile price which is used to manage the Maker platform) and Dai (DAI, A currency whose price is stable and suitable for payments, to savings or collateral.)
MKR has three essential roles on the Maker platform:
1. Utility Token: You can only use MKR to pay the costs incurred on CDPs that generate Dai in the Maker system. When you pay these fees, the MKR is "burned" or removed from the reserve. The MKR supply will decrease as the MKR is burned. If the demand for Dai and CDP increases, the demand for MKR should also increase.
2. Governance Token: MKR holders use the token to vote on the risk management and logistics of the Maker system. Maker’s voting process is through continuous approval voting.
3. Recapitalization resource: If certain parts of the collateral portfolio become sub-collateral, the Maker system automatically creates new MKR tokens and sells them on the market. This instantly raises funds to capitalize the value deficit in the system and relieve the entire Maker system from insolvency. Poor governance will dilute the value of all MKR tokens. This creates a penalty system that should align the interests of Maker voters with those of the entire Maker system.
it should be noted that the Maker project underwent a major metamorphosis on November 18, 2019. Indeed, since that date, ethers (ETH) are no longer the only collateral available to obtain new DAIs, since they can be supported by several different collaterals (“multi-collateral DAI“)