Maker (MKR) is the governance token powering the Maker Protocol and MakerDAO, decentralized platforms built on Ethereum that generate and manage the DAI stablecoin. Launched in 2017, Maker revolutionized decentralized finance (DeFi) by enabling users to mint DAI—a cryptocurrency soft-pegged to the US dollar—using collateralized crypto assets.
Key Features of Maker (MKR)
Governance and Utility
- Voting Rights: MKR holders govern the Maker Protocol, deciding on collateral types, stability fees, and liquidation thresholds.
- Protocol Stability: MKR’s value correlates with DAI’s performance; tokens are burned (supply reduced) during surplus auctions or minted (supply increased) in debt auctions to balance the system.
DAI Stablecoin Mechanism
- Users lock collateral (e.g., ETH, BAT) to mint DAI loans. If collateral value drops, it’s liquidated to maintain DAI’s peg.
- DAI Savings Rate: MKR holders adjust interest rates for DAI savers to stabilize its price.
Founders and Development
- Creator: Rune Christensen launched Maker in 2015; the Maker Foundation (Cayman Islands) oversaw development.
- Funding: Raised $12M in 2017 (Andreessen Horowitz, Polychain Capital) and $27.5M in 2019 for Asian expansion.
How the Maker Protocol Works
- Proposal Polling: MKR holders signal support for changes (e.g., new collateral types).
Executive Voting: Approved proposals are implemented via smart contracts.
- Example: Adjusting the DAI Savings Rate from 0% to 8.75% to influence demand.
MKR Tokenomics
Supply Dynamics: No fixed cap; supply adjusts via:
- Surplus Auctions: Excess DAI fees buy back and burn MKR, raising its value.
- Debt Auctions: Underperformance triggers new MKR minting, diluting value.
Where to Buy MKR
👉 Buy Maker (MKR) securely on OKX and store it in a non-custodial wallet for governance participation.
FAQ Section
Q1: How does MKR maintain DAI’s peg?
A: MKR holders vote on parameters like collateral ratios and liquidation penalties to ensure DAI stays near $1.
Q2: Can non-MKR holders participate in governance?
A: Yes, via MakerDAO forum discussions, but voting requires MKR tokens.
Q3: What happens if collateral value drops?
A: Assets are automatically liquidated to cover the DAI debt, protecting the system’s solvency.
Q4: Why does MKR’s supply change?
A: Surplus auctions burn MKR (deflationary), while debt auctions mint new tokens (inflationary).
Conclusion
Maker (MKR) is pivotal to DeFi’s evolution, blending governance, stability mechanisms, and decentralized lending. Its dual-token system (DAI + MKR) ensures resilience, making it a cornerstone of Ethereum’s financial ecosystem.
👉 Explore DeFi opportunities with MKR on OKX today!
### **SEO Keywords**:
- Maker (MKR)
- DAI stablecoin
- Maker Protocol
- DeFi governance
- Ethereum blockchain
- Crypto collateral
- Surplus auctions