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Andreessen Horowitz contributes 15 million dollars to the MakerDAO currency

Andreessen Horowitz contributes 15 million dollars to the MakerDAO currency
Sep 25, 2018 by Rico Wise

The VC company from the United States, which is known for its contributions to such digital currency startups as CryptoKitties and OpenBazaar, has recently bought 6% of the entire supply of MakerDAO’s native currency, MKR tokens, via its 300 million USD digital currency fund dubbed a16z. It contributed 15 million USD to the startup and classified the contribution as a “strategic purchase”.

Possession of the MKR tokens by a16z will enable the fund to manage MakerDAO, along with its Dai Credit System, which is on its way to becoming the world’s first decentralized self-governing stable-coin project.

The aforementioned credit system offers management of a decentralized Dai stablecoin with help of smart contracts based on Ethereum’s platform. The autonomous ecosystem sets up a token with high durability level when customers turn their assets into collateral to secure the loan. The stablecoin then turns into a central digital currency for the loan amount denotation, which equates to the USD price of the said deposit.

The Dai token is supported by ETH, which is a digital currency that dropped by 80% of its price against USD. To make sure that pegging relies on more than one digital currency, MakerDAO intends to present a diversified basket of collateral types, which, among other options, would offer tokenized equities and stablecoins backed by fiat currencies.

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