In the world of cryptocurrencies and decentralized finance (DeFi), Maker (MKR) is a governance token associated with the MakerDAO and the Maker Protocol. It’s a key component of a system that allows users to create and manage Dai (DAI), a stablecoin designed to maintain a value close to the US dollar.
Here’s a breakdown of what Maker (MKR) entails:
- Governance: Holders of MKR tokens have voting rights and influence over the development and parameters of the Maker Protocol and MakerDAO. This decentralized governance structure allows the community to collectively make decisions on critical aspects, including:
– Stability fees: These are essentially interest rates charged on DAI generated from Collateralized Debt Positions (CDPs).
– Collateral types: Determining which cryptocurrencies can be used as collateral to generate DAI.
– Risk parameters: Adjusting risk settings for various collateral assets.
– Dai Savings Rate (DSR): The interest rate DAI holders can earn by locking their tokens in a smart contract.
- Stability Mechanism: MKR tokens play a crucial role in maintaining the stability of the DAI stablecoin. If the value of the collateral backing DAI falls below a certain threshold, the system may mint and sell new MKR tokens to cover the difference and restore the peg. Conversely, if the system generates surplus fees, it uses those fees to buy and burn MKR tokens, reducing the supply and potentially increasing its value.
- Utility Token: MKR tokens are also used to pay fees accrued on CDPs, according to Crypto.com.
In essence, Maker (MKR) empowers its holders to participate in the decentralized governance of the Maker Protocol and the DAI stablecoin, contributing to its stability and long-term health within the DeFi ecosystem.
What does Maker coin do?
Maker (MKR) is an ERC-20 token native to the Maker Protocol, a decentralised finance (DeFi) project which is also known as the Multi-Collateral Dai (MCD) system as it allows users to leverage assets to generate Dai – a community-managed decentralised cryptocurrency that tracks the price of USD.
How much is maker coin worth in dollars?
The amount of Maker traded has fallen by -$9,457,363.20 in the last 24 hours, which is a 16.24% decrease. Additionally, in the last day, $58,233,382.98 worth of MKR has been traded. The exchange rate of Maker is increasing. The current value of 1 MKR is $1,882.44 USD.
Is Maker a good coin to buy?
Maker Overview
According to our price prediction, MKR price is expected to have a -0.06% decrease and drop as low as by June 29, 2025. Our analysis of the technical indicators suggests that the current market feeling is neutral Bearish 42%, with a Fear & Greed Index score of 65 (Greed).
Why is Maker coin so expensive?
I can help with that. The reason MKR is up more than 95% First, the accumulation (first noticed on a few Coinbase wallets) is likely due to a spike in Maker fees (MKR). In recent days, the protocol has passed the $315000 daily fee mark. The increase in the price of MKR can be explained by the token transition of the protocol.