Maker (MKR)

The protocol behind DAI. Decentralized central banking.

What is Maker?

Maker is the governance token of the Maker Protocol — the system that creates and manages DAI, the largest decentralized stablecoin. MKR holders are effectively the board of directors for a decentralized bank, voting on interest rates, collateral types, risk parameters, and protocol upgrades.

The Maker Protocol allows users to lock up collateral (ETH, WBTC, and other approved assets) to generate DAI. This is how new DAI enters circulation. MKR holders govern which assets can be used as collateral, what the borrowing rates should be, and how much risk the protocol should take — decisions that directly affect the stability and growth of DAI.

MKR has a unique value accrual mechanism: when the protocol earns surplus revenue, it uses those funds to buy back and burn MKR tokens. When the protocol takes a loss, new MKR is minted to cover it. This makes MKR holders the ultimate risk takers and beneficiaries of the system.

How Maker Works

Maker is like a decentralized central bank run by its shareholders. MKR holders vote on monetary policy — what interest rates borrowers pay, which assets are safe enough to use as collateral, and how the protocol should evolve. When people deposit collateral and borrow DAI, they pay stability fees. Those fees generate revenue for the protocol. If revenue exceeds costs, surplus is used to buy and burn MKR (making remaining tokens more valuable). If the system takes a loss, new MKR is minted to cover debts (diluting holders). This direct skin-in-the-game is what makes MKR governance serious business.

Maker Ecosystem

Governance of the Maker Protocol and DAI stablecoin
Setting interest rates, collateral types, and risk parameters
MKR buy-back and burn from protocol surplus revenue
SubDAOs and the Sky ecosystem for specialized governance
One of the oldest and most battle-tested DeFi protocols

Team & Development

Maker was founded by Rune Christensen in 2014, making it one of the oldest DeFi protocols. MakerDAO governed the protocol through direct MKR voting. The protocol has been restructured under the "Endgame" plan with a rebrand to the Sky ecosystem, though MKR and DAI remain the core products. Multiple independent teams contribute to development.

Frequently Asked Questions

What does MKR do?

MKR is the governance token for the Maker Protocol. Holders vote on interest rates, collateral types, and risk parameters that govern DAI. MKR is also bought back and burned when the protocol is profitable, and minted when it takes losses.

How is MKR different from DAI?

DAI is a stablecoin pegged to $1. MKR is the governance and risk token — its price fluctuates based on the health and profitability of the Maker Protocol. Think of DAI as the product and MKR as the company stock.

Where do I store MKR?

MKR is an ERC-20 token on Ethereum. Store it in MetaMask, Trust Wallet, Ledger, or any Ethereum-compatible wallet.

Can I sell or swap MKR?

Yes. Swaps supports selling MKR for fiat and swapping it for other tokens.

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