What is Maker (MKR)?
MKR is the governance token of the MakerDAO protocol. MakerDAO was a pioneer in DAOs, founded in 2015 it was the first DAO to achieve widespread popularity. MakerDAO was established to control and regulate in a decentralized way the price action of DAI, a stablecoin pegged to the USD. The MKR token is the governance token of MakerDAO, meaning that its holders wield voting power over important protocol decisions.
What makes it unique?
One of the first DAOs in the space, MakerDAO was a pioneer for decentralized organizations;
MKR is the governance token of MakerDAO;
The Maker protocol is one of the largest dApps on the Ethereum ecosystem;
Originally controlled by the Maker Foundation, governance has since shifted to be controlled exclusively by MKR token holders;
MKR holders are in charge of keeping DAI’s price stable and closely following the USD;
Additionally, MKR holders are in charge of maintaining and updating the protocol’s infrastructure through voting on community proposals.
The MKR token serves a vital role in the function of MakerDAO and, thus, in the DAI stablecoin. MakerDAO is a decentralized organization meant to regulate and control DAI. Originally, important governance decisions were made by the Maker Foundation. However, as of July 2021, the governance of MakerDAO is carried out entirely by MKR token holders. The utility of owning and holding MKR then lies in being able to take part in decision-making regarding DAI and the MakerDAO protocol itself. One of the most important roles MKR plays is the ability to vote on the DAI Savings Rate (DSR), which is an interest rate rewarded to deposits of DAI.