What is Maker and what is its role?
Maker was the protocol behind the DAI stablecoin, and MKR was its governance token. A 2024 rebrand to Sky made SKY the voting token for the system.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
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What is Maker and what is its role? Maker runs on Ethereum and issues DAI, a stablecoin designed to hold a value close to one US dollar. MKR was the governance token for that system, and its role was to let holders vote on the rules that keep DAI stable.
How does Maker work?
Governance token holders vote on rules that keep DAI stable, including which assets can back DAI and how much collateral each vault must hold. MKR holders once set these rules; after the 2024 rebrand, SKY holders do. To get DAI, a user locks crypto into a vault and generates DAI as a loan against it. The collateral must be worth more than the DAI drawn, because its value can fall while the debt stays the same.
Who created Maker and when?
Rune Christensen founded MakerDAO in 2014, and the project launched DAI in 2017. In 2024 it rebranded to Sky and introduced SKY as the governance token. MKR became a legacy token that holders can convert to SKY.
How is MKR different from DAI?
DAI is a stablecoin designed to track the dollar, and MKR is a legacy governance token with no target value. If a vault's collateral falls short, the protocol sells its governance backstop token to cover the DAI shortfall; that was MKR before 2024 and SKY after.
What risks and rules apply?
MKR is not a stablecoin, so its value can swing with governance decisions and losses in the vault system. DAI is not always backed dollar-for-dollar by US dollars; it uses crypto collateral and other assets. US stablecoin rules are still developing, so DAI's legal treatment is not fully settled.
Frequently asked questions
No. DAI is the stablecoin the protocol issues, and MKR is a legacy governance token with no fixed value. MKR can be converted to SKY.
No. After the 2024 rebrand, SKY holders vote on protocol rules. Those votes usually cover things like which collateral is accepted.
The protocol can adjust stability fees or sell collateral to push DAI back toward a dollar. If the shortfall is large, it sells its governance backstop token, which was MKR before 2024 and SKY after.
No. Sending or receiving DAI does not involve MKR. MKR matters mainly to people who took part in governance or who want to convert it to SKY.
