What is Dai?
DAI is a stablecoin (a cryptocurrency with a stable price) that is based on the Ethereum blockchain and managed by the Maker Protocol and the MakerDAO decentralized autonomous organization (DAO). The price of DAI is pegged to the US dollar and is collateralized by other cryptocurrencies that are deposited into smart-contract vaults every time new DAI is minted.
It's important to note the difference between Multi-Collateral DAI and Single-Collateral DAI (SAI). SAI is an earlier version of DAI that could only be collateralized by a single cryptocurrency and did not support the DAI Savings Rate, which allows users to earn savings by holding DAI tokens. Multi-Collateral DAI was launched in November 2019.
Unlike many other cryptocurrencies, DAI was not created by a single person or a small group of co-founders. Instead, the development of the software that powers DAI and the issuance of new tokens is governed by the MakerDAO and Maker Protocol. MakerDAO is a DAO that is managed democratically by the holders of its Maker (MKR) governance tokens, which act like a traditional company's stock. MKR holders can vote on key decisions regarding the development of MakerDAO, Maker Protocol, and DAI, with their voting power being proportional to the number of Maker tokens they own.
MakerDAO was founded by Danish entrepreneur Rune Christensen in 2015. Before starting work on the Maker ecosystem, Christensen studied biochemistry and international business in Copenhagen and founded the Try China international recruiting firm.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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