DAI meaning in Cryptocurrency ?

Answer: What Is DAI [DAI]?

DAI is an Ethereum-based stablecoin (stable-price cryptocurrency) whose issuance and development is managed by the Maker Protocol and the MakerDAO decentralized autonomous organization.

The price of DAI is soft-pegged to the U.S. dollar and is collateralized by a mix of other cryptocurrencies that are deposited into smart-contract vaults every time new DAI is minted.

It is important to differentiate between Multi-Collateral DAI and Single-Collateral DAI (SAI), an earlier version of the token that could only be collateralized by a single cryptocurrency; SAI also doesn’t support the DAI Savings Rate, which allows users to earn savings by holding DAI tokens.

Multi-Collateral DAI was launched in November 2019.

Who Are the Founders of DAI?

One of the defining features of DAI is that it wasn’t created by any single person or a small group of co-founders. Instead, the development of the software that powers it and the issuance of new tokens is governed by the MakerDAO and Maker Protocol.

MakerDAO is a decentralized autonomous organization — a kind of company that runs itself in a decentralized manner via the use of smart contracts — self-enforcing agreements expressed in software code and executed on the Ethereum blockchain.

This organization is managed democratically by the holders of its Maker (MKR) governance tokens, which act similarly to a traditional company’s stock; MKR holders can vote on key decisions regarding the development of MakerDAO, Maker Protocol and DAI, with their voting power being proportionate to the amount of Maker tokens they own.

MakerDAO itself was originally founded by a Danish entrepreneur Rune Christensen in 2015. Before starting work on the Maker ecosystem, Christensen studied biochemistry and international business in Copenhagen and founded the Try China international recruiting firm.

What Makes DAI Unique?

DAI’s main advantage lies in its soft peg to the price of the U.S. dollar.

The crypto market is notorious for its volatility with even the largest, highly-liquid coins such as Bitcoin sometimes experiencing price changes (both up and down) of 10% or more within a single day. Under these circumstances, traders and investors are naturally predisposed to add safe-haven assets to their portfolios, whose stable price might help offset significant market fluctuations.

One such kind of asset are stablecoins, of which DAI is one example. These are cryptocurrencies whose price is pegged to assets with a relatively stable value — most commonly traditional fiat currencies, such as USD or EUR.

Another key advantage of DAI is the fact that it is managed not by a private company, but rather by a decentralized autonomous organization via a software protocol. As a result, all instances of issuance and burning of tokens are managed and publicly recorded by Ethereum-powered self-enforcing smart-contracts, making the entire system more transparent and less prone to corruption.

In addition, the process of developing DAI software is governed in a more democratic way — via direct voting by the regular participants of the token’s ecosystem.

reference

Full Form	Category
Dissertation Abstracts International	Academic & Science
Design Architecture Identification	Academic & Science
Development Alternatives Inc	Business
Defense Agencies Initiative	Business
Direct Audio Input	Community
Do As Infinity	Computer Assembly Language
Dragon Age Inquisition	Computing
Dmif Application Interface	Computing
Device Application Interface	Computing
Dynamic Arp Inspection	Computing
Data Access and Integration	Computing
Data Alignment Indicator	Computing
Distributed Artificial Intelligence	Computing
Database Access And Integration	Computing
Dai	Cryptocurrency
Digital Author Identifier	General
Dynamic Adversary Intelligence	General
Downlink Assignment Index	General
Dallas Area Interfaith	General
Direct Access Intercom	General
Days After Injury	General
Double Air Intake	General
Daihatsu Ayla Indonesia	General
Driving After Imbibing	General
Daihatsu Astra Indonesia	General
Distributed And Integrated	General
Digital Access Index	General
Dissertation Abstrcts International	General
Dissertation Abstracts Internation	General
Deadly Artificial Intelligence	General
Daimler AG It	General
Dissertation Abstracts Inter	General
Digital audio interface	General
Days After Inoculation	General
Deutsch Amerikanisches Institut	General
Detention Assessment Instrument	General
Dead Approach Invitation	General
Dayton Art Institute	Governmental
Deeper Accident Investigation	Governmental
Dutch Art Institute	International
Diffuse Axonal Injury	Medical
Drug Assisted Intubations	Medical
Data Access Interface	Networking