Maker Protocol 101 Slide Deck

Okay guys, I’m going for it, I’m gonna try to read and understand how the Maker Protocol works from this resource:

Hope you guys can join me as we dissect this together. I’m hoping to use this thread for notes as well as discussion to make sure we’re all understanding this together :slight_smile:


This is a great idea…
Looking at slide 8 (liquidations) I understand that if the collateral fell below $200 dollars, the contract is automatically liquidated and the Dai gets burned.

The burning process as i understand is to decrease the supply of Dai in order to control deflation. and i know the process is that the Dai is sent to an address known as the eater address(inaccessible wallets).

where i get stuck is once these tokens are burnt do they ever come back into circulation? and if not why not?
e.g: Binance burns its BNB tokens every quarter and to date as of (April 2020) according to Bitcoin Ink on its 7th burn equated to 829,888 BNB’s
15,600,000 USD.

Thats a lot of burnt dosh just vamooshed isn’t it? :money_mouth_face:

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