Maker
MKR
Evaluation Score
Overall rating on a scale of 0-10
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AI Analysis
Comprehensive evaluation of the token
Overall Analysis
Maker (MKR) is the governance token of the pioneering MakerDAO protocol. It boasts high marks in active development (8.5/10), tokenomics (9/10), security (9.5/10), and governance (9/10), reflecting a mature codebase, rigorous audits, and robust on-chain decision-making. While community engagement (7/10) trails top DeFi peers, Maker’s transparent Core Unit model and disciplined CI practices support ongoing growth. DAI’s $5.4 B TVL and diverse collateral mix underscore real-world utility, though competition in the stablecoin sector and entrenched governance power concentration pose challenges.
Key Strengths
- Decentralized, over-collateralized stablecoin with strong TVL and RWA integration
- Rigorous security audits, formal verification, and resilient Black Thursday response
- Highly active development and transparent MIP-based upgrade path
Risks
- Governance turnout below 5% and token voting concentration among whales
- Competitive pressure from USDC/USDT and emerging on-chain stablecoins
- MKR price volatility tied to protocol performance and market sentiment
Conclusion MKR offers a strong foundation for long-term value accrual through governance fees, but investors should monitor governance dynamics and stablecoin market shifts.
Detailed Analysis by Category
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Maker (MKR)
Maker (MKR)
Maker (MKR) is the native governance token of the Maker Protocol, an Ethereum-based decentralized finance (DeFi) platform that issues and maintains the Dai (DAI) stablecoin.
Key Features
- Token Symbol: MKR
- Token Type: ERC-20 on Ethereum
- Primary Utility: Governance voting on Maker Protocol parameters (collateral types, risk parameters, stability fees)
- Supply Mechanism: MKR tokens are minted to cover system losses and burned when stability fees are paid, aligning incentives between stakeholders.
Maker Protocol Overview
The Maker Protocol enables users to lock supported collateral assets in smart contracts (Vaults) to generate Dai, a soft-pegged stablecoin. MKR holders guide protocol upgrades, parameter adjustments, and collateral onboarding through a transparent on-chain governance process.
Why MKR Matters
- Decentralized decision-making: MKR holders shape the future of one of DeFi’s foundational protocols.
- Risk management: Voters set risk parameters to ensure the stability of Dai.
- System sustainability: The mint-and-burn mechanism aligns MKR supply with protocol performance.
For the latest Maker (MKR) contract address, governance proposals, and real-time metrics, please refer to official MakerDAO documentation and explorer resources.
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