Almost 1% of Total Ethereum Supply Locked in MakerDAO Smart Contract
Creator of MKR.tools , Mike McDonald made a revelation on Twitter yesterday morning. According to the Ethereum blockchain, about 1 million ether or almost 1 percent of the total Ethereum supply is presently locked in MakerDAO smart contracts.
He tweeted: “There is now 1,000,000 ETH locked in @MakerDAO smart contracts as of this morning . A slight rounding error away from 1% of the total ETH supply.”
MakerDAO is the project behind Dai, a second-generation stablecoin offering which enables the issuance of the US dollar on the Ethereum blockchain. Maker offers helpful explanation for novices that does not require one to be an expert economist or Ethereum developer to key into. Author Gregory DiPrisco explains the difference between Dai and Tether thus:
“You’re most likely familiar with stablecoins that hold USD in bank accounts and issue tokens on a blockchain that are ‘backed’ by these dollars. I call this legally-backed crypto, or an IOU coin, because if those bank accounts should ever be frozen or if the accountants defrauded token holders, the stablecoin now becomes an IOU on whatever’s left when they eventually get the bank accounts back (if they ever regain the bank accounts). Relying on the legal system to maintain crypto-tokens inserts an unreliable middle-man into the blockchain.”