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    Maker

    MKR

    Evaluation Score

    Overall rating on a scale of 0-10

    RiskReturn
    07.810
    Risk Level:
    Medium
    Recommendation:Buy
    Evaluated:May 18, 2025 (v4)

    Crypto Token Health Score Explained

    Our AI-powered health score evaluates on-chain metrics, community support, tokenomics, and more. This helps DeFi investors understand risk, compare tokens, and make informed decisions. Learn how to analyze DeFi tokens' risk and use these insights for DeFi portfolio risk management.

    AI Analysis

    Comprehensive evaluation of the token

    Maker (MKR) — Overall Assessment

    Strengths

    • Oldest and largest decentralized-stablecoin protocol; real, proven product–market fit.
    • Mature development practices: weekly on-chain upgrades, high test coverage, multiple Tier-1 audits, and continuous formal verification.
    • Experienced, fully doxxed contributor base operating under transparent "Core Unit" budgeting, with long operational history.
    • Engaged, technically competent community that converts discussion into on-chain governance participation.
    • Clear economic link between protocol revenue (stability fees) and MKR burn, offering a cash-flow proxy for holders.

    Key Risks

    • Emergency minting of unlimited MKR to recapitalize bad debt creates tail-risk dilution.
    • Governance power is whale-heavy; voter turnout often <5 % of supply, leaving room for capture.
    • Development velocity has slowed as the protocol matures; innovation cadence may lag newer competitors.
    • Growing reliance on centralized collateral (e.g., USDC) introduces regulatory/censorship vectors.

    Outlook Maker remains the benchmark for decentralized stablecoins and shows strong security, governance transparency, and sustained community support. While tokenomics carry structural dilution risk and governance centralization concerns, the protocol’s resilient revenue model and battle-tested track record provide a solid investment case for diversified crypto portfolios willing to accept medium systemic risk.

    Detailed Analysis by Category

    Development Activity

    Code updates and developer engagement

    RiskReturn
    07.310

    Community Support

    Social media presence and community engagement

    RiskReturn
    07.910

    Tokenomics

    Supply, distribution, and utility

    RiskReturn
    06.510

    Market & Use Case

    Value proposition and competitive landscape

    RiskReturn
    08.310

    Team & Governance

    Team background and project governance

    RiskReturn
    08.810

    Security & Audits

    Security history and audit status

    RiskReturn
    08.310

    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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