Maker

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1)What is MKR?

Maker (MKR) is an ERC-20 cryptocurrency launched in December 2017, functioning as a governance token for MakerDAO and Maker Protocol, and is central to managing the DAI stablecoin. Operating on the Ethereum blockchain, Maker is a decentralized finance (DeFi) lending platform that allows users to mint Dai by locking Ethereum in smart contracts. The platform, overseen by MakerDAO—a decentralized autonomous organization of MKR holders—enables these holders to participate in significant decisions, including protocol upgrades. MKR's design, incorporating a two-token system with Dai (pegged to the U.S. dollar), aims to mitigate volatility in crypto lending and borrowing. As a substantial cryptocurrency, MKR ranks 25th in market capitalization, surpassing $800 million and exceeding the active addresses of USDT, the largest stablecoin. This positioning highlights its importance in the cryptocurrency market, especially in governance and stability.

2)Which sector does MKR belong to?

Maker (MKR) belongs to the decentralized finance (DeFi) sector. DeFi has witnessed significant growth and transformation in recent years. As of November 2022, the Total Value Locked (TVL) in DeFi was $42.4 billion, marking a 400% increase since July 2020. This sector encompasses a variety of services, including decentralized exchanges (DEXs) and lending and borrowing platforms.

The current situation in the DeFi sector is dynamic, having experienced a surge in demand in 2021, followed by a downturn. However, in 2023, the sector is regaining momentum due to several positive developments. The future of DeFi is considered pivotal for 2023, with its growth heavily reliant on the adoption of blockchain technology, regulatory changes, and advancements within the ecosystem.

One of the key trends shaping DeFi's future is the integration of real-world assets (RWAs). This integration has already unlocked significant liquidity and utility by transitioning these assets onto blockchain platforms. Major DeFi entities like MakerDAO are leading this trend by investing in U.S. Treasurys and corporate bonds, and partnering with traditional banks to provide loans using RWAs as collateral.

Looking ahead, the DeFi market is expected to grow considerably. The market size, valued at USD 13.61 billion in 2022, is projected to expand at a compound annual growth rate (CAGR) of 46.0% from 2023 to 2030. This growth is attributed to the widespread acceptance of DeFi, which has been a transformative force in the financial sector and a key driver of market growth.

3)What is tokenomics of MKR (includes allocation and supply schedule)?

Token MKR was launched in Jul 2017. The initial supply is 1.005 million, the current circulation is 0.918 million, the circulation accounts for 91%, the market value is 1.40 billion US dollars, and the FDV is 1.53 billion US dollars. The token is currently close to its issuance price.

The tokenomics of Maker (MKR) involve a detailed allocation and supply management system. Initially, the token distribution was as follows: 69.50% was allocated to Founders & Project, 15.00% to the Team, 4.00% to Seed Round 1, and 6.00% to Seed Round 2. From the genesis total of 1M MKR tokens, 8,522 have been burned, and 84,000 belong to the treasury, making the circulating supply about 91% of the original 1M.

Under the Maker Endgame Plan, MKR's tokenomics have been revised. MKR is the governance token for the Maker Protocol and is subject to emission and burning under various circumstances. Maker Core emits a total of 60,000 MKR each year, allocated to benefit its subDAOs (decentralized autonomous organizations). The emissions are used differently depending on the valuation of each SubDAO token, ultimately resulting in the emitted MKR entering a liquidity pool.

Additionally, Maker Core emits 5,000 MKR annually for incubating new SubDAOs and providing decentralized workforce bonuses. Maker Governance now has the option to modify Dai's Target Price instead of using MKR as a backstop for Dai value in case of bad debt in the Maker Protocol.

The Endgame Plan introduces the Maker Smart Burn Engine, which uses the Maker Core protocol surplus to accumulate Elixir, benefiting Dai and MKR liquidity. The Reverse Burn Engine buys and burns MKR when it is judged to be undervalued.

Furthermore, the Endgame Plan modifies the MKR burn mechanism, using profits to purchase liquidity pool tokens representing pools holding MKR, Dai, and SubDAO governance tokens. These tokens are then used to buy and burn MKR at opportune times. Annual MKR minting is used to fund SubDAOs, AVCs (Aligned Voter Committees), and workforce incentives, counteracting the burn mechanism and preventing MKR concentration in a few hands.

Users can lock up their MKR in a new module for governance participation, making the locked MKR eligible for Dai and SubDAO token farming rewards. A portion of the initial deposit is burned when MKR is unlocked from this module. Finally, Maker Governance no longer guarantees MKR as a backstop in the event of Maker insolvency, possibly opting to adjust Dai's Target Price, which could devalue Dai holdings.

4)What about the team and the investors of MKR?

Team Behind MKR

The team behind Maker (MKR) and its funding history are characterized by significant contributions from key individuals and organizations. MakerDAO, the organization behind MKR, was founded by developer and entrepreneur Rune Christensen. He conceived the idea in 2015, and the project officially launched in December 2017. Christensen, a graduate in Biochemistry from the University of Copenhagen, has played a pivotal role in leading the Maker platform.

Funding History

In terms of funding, MakerDAO received $27 million in venture capital funding during 2017 and 2018. Notably, Andreessen Horowitz, through its a16z investment fund, invested $15 million in MakerDAO in September 2018, purchasing 6% of the total supply of MKR. This investment was part of the first funding round, which included eight investors. Additionally, two venture capital firms, Dragonfly Capital and Paradigm, invested a combined total of $27.5 million in MakerDAO in December 2019, acquiring about 5.5% of the total supply of DAI in circulation worldwide.

5)What is the development history of MKR?

List all important events and milestones in the development process of MKR. Significant Milestones in MKR's Development（updated to 2021）

1. 2014: MakerDAO was founded by Rune Christensen.

2. March 26, 2015: MakerDAO and its first stablecoin are introduced.

3. November 2015: MakerDAO team presents at DevCon1.

4. May 2017: ProtoSai, the first version of Dai, goes live.

5. August 2015: MKR token launched.

6. December 10, 2017: Sai (Single-Collateral Dai) white paper published.

7. December 19, 2017: Sai launches on the Ethereum mainnet.

8. June 21, 2018: The Foundation Proposal for decentralized governance is published.

9. November 18, 2019: Multi-Collateral Dai goes live.

10. March 25, 2020: MKR token contract transferred to Maker governance.

11. May 2, 2020: Maker Improvement Proposals (MIPs) framework approved.

12. March 25, 2021: Core Units framework ratified.

13. May 3, 2021: Maker Foundation returns Dev Fund holdings to the DAO.

14. June 2, 2021: Liquidations 2.0 Module activated.

15. July 20, 2021: Complete decentralization of MakerDAO announced by Rune Christensen.

6)What is the progress and future roadmap of it?

Future Roadmap and Developments MakerDAO's progress and future roadmap, especially for 2023, are outlined in their recently announced updates and the "Endgame" five-phase project. Here's a summary of the key elements:

1. Rebranding and Token Preservation: The first phase involves a full rebrand to unify the Dai (DAI) and Maker (MKR) brands. Despite the rebranding, Dai and MKR will remain unchanged. However, two new tokens with updated features, temporarily named "NewStable" and "NewGovToken," will be added.

2. Launch of Maker SubDAOs: The roadmap includes the launch of six Maker SubDAOs (decentralized autonomous organizations), along with NewStable token farms. These subDAOs will be categorized as facilitator and allocator DAOs, aimed at streamlining Maker Governance's workload and complexity.

3. AI Integration: The third phase focuses on integrating artificial intelligence (AI) tools to optimize governance tasks, monitoring, and data management. MakerDAO also plans to venture into open-source AI development with a project called "The Purpose Fund," which will support open-source AI models and tools for socially impactful industries and projects.

4. Governance Participation Incentive Program: The fourth phase will introduce an incentive program, the "Governance Participation Incentive," featuring gamification and rewards to encourage user interaction on the MakerDAO platform.

5. Development of a New Blockchain (NewChain): The final phase involves creating a proprietary blockchain, "NewChain," which will be bridged to Ethereum. This blockchain is designed to use hard forks as a governance mechanism to counter power attacks or majority holder abuse, and will support advanced Endgame features and tokenomics.

These phases are part of MakerDAO's ambitious "Endgame" plan, emphasizing AI tools and the development of a new blockchain to enhance efficiency, resilience, and participation within the ecosystem.

7)List all important links related to MKR

• MakerDAO Official Website:

https://makerdao.com/

• MakerDAO Forum:

https://forum.makerdao.com/

• MakerDAO on GitHub:

https://github.com/makerdao

• MakerDAO Governance:

https://vote.makerdao.com/

• MakerDAO Documentation:

https://docs.makerdao.com/

• MakerDAO Blog:

https://blog.makerdao.com/

• MakerDAO on Twitter:

https://twitter.com/MakerDAO

MakerDAO Community on Reddit:

https://www.reddit.com/r/MakerDAO/

8)Bullishness index for this token from the perspective of token valuation and future potential from Chatgpt 4

The current valuation and future prospects of Maker (MKR) are as follows:

1. Current Valuation: As of the latest data, the live price of Maker (MKR) is approximately $1,400.87 to $1,487.78 per MKR with a market cap of around $1.37 billion USD. Its 24-hour trading volume is noted to be about $130.97 million USD. The circulating supply varies slightly in reports, with figures such as 977,631.04 MKR and 918,470.747 MKR being mentioned.

2. Short-Term Price Prediction: For the immediate future, various sources offer different predictions for the price of Maker. One source predicts a slight drop to around $1,483.26 by the end of November 2023, with a current bullish sentiment and a Fear & Greed Index showing 'Greed'. Another forecast suggests a potential increase to $2,619.89 by the end of 2023, indicating significant growth over the past year. A more conservative estimate sets the Maker price at around $1,220.34 by December 2023.

3. Long-Term Prospects: Looking towards the longer-term future, the prospects for Maker appear optimistic. By 2030, its price is projected to surpass $14,471.30. By 2024, the price could range between $1,280 and $1,750, potentially exceeding $2,400 by 2025. Another source forecasts that Maker’s price could hit as high as $1,831.61 by the end of 2023 and potentially reach $4,391.63 by the end of 2030. This positive outlook is reinforced by the increasing priority given to decentralized technologies like MakerDAO for enhancing privacy and user security.