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Nonetheless, there’s also some deflationary tension to the MKR supply, to be a portion of the protocol’s Stability Cost is utilized to acquire MKR tokens and melt away them.
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Conversely, if there are actually not sufficient DAI tokens during the process, new MKR tokens are created and auctioned off for DAI. This kind of an auction took place in March of 2020, when a considerable fall during the price of ETH produced challenges for that Maker Protocol and resulted within a DAI deficit.