Total amount of tokens and circulation

Maker's core governance token is Mkr, with a total of about 1 million (will be issued under the new economic model of the "Sagittarius engine" in the future), and it is now basically in circulation. Dai is the stable currency of the system.

Token value capture

The token scenarios of Mkr include:

● The core governance token of the protocol allows its holders to vote to modify the risk parameters of the Maker protocol, introduce new collateral, modify Dai's deposit interest rate, and select oracle node groups, etc.

● The income of the Maker agreement will enter the Maker Buffer address (Maker Buffer). After the Maker Buffer reaches a certain amount of surplus (the specific value is determined by the governance of Maker holders), part of the surplus will enter the surplus auction and repurchase MKR burns to increase the intrinsic value of Mkr tokens.

However, it should be noted that if bad debts occur in the Maker system and the buffer funds are insufficient to pay, additional MKR will be issued for auction, and the sold Dai will be used to fill the bad debts of the system. This also restricts Mkr holders to be cautious. Attitude to govern the agreement.

Regulatory risk

MakerDAO was established earlier, investors are mainly institutions, and there has been no public-facing token fundraising. At present, the degree of community governance of the project is relatively high, and the team share is small. And in July of this year, Rune Christensen, the founder of MakerDAO, also stated that he would dissolve the MakerDAO Foundation in the next few months and entrust the project operation rights to the community. In view of the above situation, MakerDAO's short-term regulatory pressure is relatively small. But it should be noted that there are a large number of centralized stablecoins left on the balance sheet of the MakerDAO project, of which USDC is the main one. September data shows that it accounts for about 59% of the total assets. MakerDAO has noticed the potential dangers in this regard, and its countermeasures include depositing its USDC in compound, Aave and other capital pools, using these "DeFi shields" to isolate risks, and gradually replacing USDC with developed countries with well-protected assets. ESG corporate bonds, etc., to eliminate regulatory risks from the United States.