CREATING A DECENTRALIZED DIGITAL GLOBAL ECONOMY

MakerDAO has been working towards creating a cryptocurrency that will support a stable, decentralized digital global economy. The result is Dai, the first fully-decentralized stablecoin on Ethereum.

It was formed in 2014 and has a vision to create a stable, decentralized digital global economy. The final result was launching Dai, a cryptocurrency that promises stability in currency valuation.

UNDERSTANDING DAI’S VALUATION

Currently Dai’s value is 1 Dollar. It is created to have low volatility against Euro and USD, the world’s leading national currencies. There are two mechanisms that MakerDAO uses to make this happen.

For starters, Dai has an autonomous system of smart contracts that monitors the market’s dynamics and responds accordingly. This system is designed to be independent so that no one can alter its mechanism. As such, even MakerDAO cannot alter the system, hence ensuring that no one can manipulate Dai’s value for self-gain while inconveniencing other Dai users.

Besides, Dai is a secured asset backed by Maker smart contract. Users can retrieve their collateral by paying off the debt of the Dai that they initially received as well as a minor stability fee.

GETTING DAI

To process of mining Dai is a bit different from purchasing bitcoin. You can get this coins either buying them or creating them. If you want to create Dai, you have to log onto the MakerDAO platform and send Ether to the Collateralized Debt Position (CDP).

You can also always buy Dai coins if you are not in a position to create one.

This coin is its early stages, and its stability is expected to attract many investors on the coming years.