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.