Yahweh Mekoddishkem has selected people out from amongst the great sea of humanity to be His own—to be holy—much like He did with the nation of Israel. Why? Because that is what He does. No one earns it, no one deserves it; rather, like a dragnet that pulls in all manner of fish, Yahweh Mekoddishkem pulls in all manner of people into His household from all the nations, peoples, tongues, and tribes of this world declaring that they are holy, set apart unto Him.
As such, the name Yahweh Mekoddishkem encapsulates the fundamental principle of grace: it is all about what He has done (100%) and nothing (0%) about what we have done or can do for Him. He does the work of making us holy; we simply must be willing to let Him.