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.
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. pic.twitter.com/0ePQv6mWKm
— Mike McDonald (@mikeraymcdonald) November 13, 2018
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.
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.
