Launched in December 2017, Maker is the governance token for the Maker Protocol, which manages the DAI stablecoin on the Ethereum blockchain. Maker and DAI are issued by the MakerDAO, one of the earliest decentralized finance projects.
Unlike traditional stablecoins, DAI is pegged to the dollar but is backed by MKR. The Protocol employs smart contracts to regulate the MKR token supply such that it is automatically issued or burned to keep DAI’s price stable.
By holding MKR, users can participate in the voting on the Maker Protocol, for which they subsequently earn rewards. MKR holders actively influence the management of DAI, interest rates, asset pairs offered on the platform, and so on.