Mon. Oct 25th, 2021
    MKR token, Wiki

    MKR (Maker) is the second MakerDAO token (the first is DAI) that acts as a governance token. MKR is in charge of the platform itself and fixes the cost of DAI. The token is also used to invest in the project.

    MKR token functions

    • This token is used to pay transaction fees and redeem the collateral.
    • Platform governance: users who have MKR can make modification decisions and vote on certain proposals. Moreover, the more tokens on the account, the higher the participant’s vote.
    • As a means of recapitalization. If an error occurs in the system and extra funds are debited from the account, the program will automatically replenish them.
    • The advantage is a small emission.

    While the value of DAI (the first MakerDAO token) is almost always equal to $1, the rate of MKR fluctuates, allowing traders to earn on it.