TORONTO, March 14, 2019 (GLOBE NEWSWIRE) -- Ether Capital Corporation (“Ether Capital”, “ETHC” or the “Company”) (NEO:ETHC) is pleased to announce that it has made a US$1.0 million investment in MKR, the governance token of MakerDAO (“Maker”). Maker is a decentralized credit platform built on Ethereum in which collateral is leveraged to produce a stablecoin. With over US$350 million of collateral and stablecoin value currently deployed in Maker, it is one of the most prominent projects in the Web 3 ecosystem.
Ether Capital purchased 2,300 MKR tokens from the Maker Ecosystem Growth Foundation (the “Maker Foundation”) in exchange for 7,374 Ether (“ETH”), which is accretive to the Company. Following the Maker transaction, Ether Capital’s ETH balance is now at 35,210.
The Maker Foundation sale was exclusive and conducted privately, with buyers reflecting the Maker Foundation’s intention to distribute the MKR tokens to long-term, strategic holders that will participate positively and constructively in Maker governance and development.
Maker uses a dual token model: (1) the Dai token: a stablecoin whose value is pegged at US$1.00; and (2) the MKR token: a token that provides voting and governance rights over the Maker platform and whose value derives from fees paid to use the credit system. Maker plans to deploy a new version of the platform in 2019 that would allow multiple collateral types beyond ETH to be used in its credit system, which we expect would bring additional scalability to Dai issuance and ultimately lead to multi-billions of dollars worth of collateral entering the Maker system.
Ether Capital believes that a decentralized stablecoin like Dai is critical for adoption and growth of the Ethereum and Web 3 ecosystem. Dai allows users to trade and interact with applications on Ethereum without the volatility associated other cryptocurrencies or the redemption risk associated with centralized, fiat-collateralized stablecoin...