Glossary
MKR
MakerDAO's governance token — controls every parameter of the DAI / USDS system. Holders are diluted on bad-debt events and burned-against on positive treasury cashflow.
MKR has been MakerDAO's governance token since 2017. Holders vote on stability fees, collateral types, debt ceilings, savings rates, and contract upgrades. The token's economics include a built-in recapitalization mechanism: if collateral auctions fail to cover DAI debt, the protocol mints new MKR to sell — diluting holders.
In the opposite direction, surplus revenue used to buy back and burn MKR has historically reduced supply. The 2024 Sky / Endgame rebrand introduced an optional MKR-to-SKY upgrade at a 1:24,000 ratio, accompanied by deeper subDAO splits.