HomeCryptoEthereum1% of Ethereum's total supply is in MakerDAO's (DAI) smart contract

1% of Ethereum’s total supply is in MakerDAO’s (DAI) smart contract

Mike McDonald tweeted on November 13th that nearly 1% of Ethereum‘s total supply is contained in the smart contract developed by the MakerDAO project team.

The smart contract in question is the one responsible for creating the decentralized stable coin DAI.

Despite this large amount of Ethereum, the market cap of the stable coin in question amounts to only $71.5 million, according to data reported by Coinmarketcap.

This brings the stable coin to the 73rd position based on the total market value.

ethereums total supply smart contracts

The difference between the amount of Ethereum in the smart contract and the amount of stable coins is due to the fact that the implementation of trustless and practical systems is taking place slowly.

In fact, while one of the main problems with cryptocurrencies is volatility, stable coins, while stable by definition, are not trustless, as it is necessary to trust a third party to support them and keep their value stable.

The need to trust third parties cancels the purpose of using a cryptocurrency, since these were created to disintermediate and create a system that can not be manipulated and controlled by anyone.
In this perspective, DAI proposes itself as a trustless stable coin.

Adrian Zmudzinski
Adrian Zmudzinski
Adrian is passionate about technology and Information Technology (IT). Adrian specialized in the analysis of tokens, the blockchain technology, and cryptocurrencies. His interest in Bitcoin dates back to 2009 and it rapidly transformed into a more general interest of the still arising cryptocurrency industry. His analyses are concerned mostly by the technological potential underlying the analyzed token.