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About
Maker (MKR)

Maker (MKR) is the governance token of MakerDAO, a pioneering Decentralized Autonomous Organization (DAO) built on the Ethereum blockchain. Its primary purpose is to maintain the stability of DAI, a decentralized, collateral-backed stablecoin pegged to the US dollar. MakerDAO achieves this by enabling users to generate DAI by locking up approved collateral assets in smart contracts known as Vaults (formerly Collateralized Debt Positions or CDPs). This system provides a crucial piece of Web3 infrastructure, offering a permissionless and transparent alternative to centralized stablecoins and traditional lending.

The MKR token plays a vital role in the governance and risk management of the Maker Protocol. Holders of this governance token can vote on critical parameters such as collateral types, stability fees, debt ceilings, and system upgrades through on-chain governance polling and executive votes. This decentralized network approach ensures the resilience and adaptability of the DAI stablecoin. Furthermore, MKR serves as a recapitalization resource; in the event of insufficient collateralization within the system, MKR may be minted and sold to cover outstanding debt, aligning holder incentives with the health of the entire DeFi application.

As a foundational DeFi protocol, MakerDAO's tokenomics, underpinned by MKR, are designed for long-term stability and growth. The platform's robust smart contract architecture and reliance on cryptographic security have established DAI as a widely adopted digital asset within numerous DeFi applications, solidifying Maker's position as a cornerstone of decentralized finance and a key component of the evolving digital ledger ecosystem. The utility of MKR as a governance token is central to its value and influence within the broader blockchain technology landscape.