Crypto Spotlight: MKR

We’ve recently added the MakerDAO (MKR) token to the Wirex app! If you fancy using MKR but don’t know much about it, here’s a brief overview for you.

What is MKR?

 MKR is a DeFi cryptocurrency that runs on the Ethereum blockchain. The aim of this cryptocurrency is to get a distributed network of computers to maintain DAI. If you’re unsure on what DAI is, it’s a specific cryptocurrency that was designed to track the price of USD (US Dollar).

Who created MKR?

MKR was created by Rune Christensen and his group of developers. It was launched in 2015.

What does it do?

You can buy MKR tokens to carry out votes on key decisions that will influence how DAI can be used. For instance, you’ll have the ability to choose which cryptocurrencies can be locked in the protocol. That, or how much these assets will be sold in liquidation.

Voting on these decisions is used with what’s called an Executive Voting process. However, first the Proposal Polling process must be carried out as it’ll help MKR holders to understand a proposal before any changes are made to the software.

Once this first stage and Executive Voting has passed, the code in MKR’s protocol will be changed to reflect the winning proposal. This vote is measured by the amount of MKR tokens committed to a proposal.

What makes it unique?

MKR is unique for allowing you, as a MKR holder, to determine key decisions on its protocols. Moreover, the more you hold, the more you’ll be able to influence on which cryptocurrencies are used in the protocol or which real-world resources could be used to develop DAI.