Maker (MKR)
Maker (MKR) is the governance token for both MakerDAO and the Maker Protocol, both of which operate on the Ethereum blockchain. MakerDAO functions as a decentralized global reserve bank, while the Maker Protocol is a software platform. The MKR token is crucial for supporting and enhancing the stability of the DAI stablecoin, which aims to maintain its value in alignment with the US dollar. This is achieved through smart contracts known as Collateralized Debt Positions (CDPs).
Tokenomics
MKR was introduced in August 2015, without an initial coin offering (ICO). Instead, MakerDAO opted for a gradual market introduction through private sales before launching the Maker market. The initial distribution of MKR tokens allocated 69.50% to founders and projects, 15.0% to the team, 4.0% to Seed Round 1, 6.0% to Seed Round 2, and 5.5% to Seed Round 3.
Utility
| Ticker | MKR |
| Category | Decentralized Finance (DeFi) |
| Website | https://makerdao.com/ |
| @SkyEcosystem | |
| https://www.reddit.com/r/MakerDAO | |
| Contract Addresses | |
|---|---|
| ethereum | 0x9f...a2 Copied! |
| polygon-pos | 0x6f...1dCopied! |
| avalanche | 0x88...42Copied! |
| energi | 0x05...8dCopied! |
| sora | 0x00...8fCopied! |
MKR serves as a utility token in the Maker ecosystem, primarily for settling fees incurred on CDPs to generate DAI. These fees are paid exclusively in MKR, which are then burned, reducing the total supply of the token. The demand for MKR is influenced by the adoption of DAI and CDPs, as users need MKR to pay the associated fees. Consequently, the total supply of MKR decreases through this burning process.
MKR also functions as a governance token, allowing holders to participate in decision-making regarding the development and management of the Maker ecosystem. Through a voting process, MKR holders can set business logic and risk management parameters for collateral assets and CDPs. This governance process uses a continuous approval voting method, enabling MKR holders to vote on multiple proposals, create new proposals, or modify existing votes at any time.
Additionally, MKR acts as a recapitalization resource. If the MakerDAO system becomes undercollateralized, new MKR tokens can be created and sold in the market to raise additional collateral through a debt auction. This mechanism gives MKR holders a vested interest in ensuring the proper management of the system.