MKR token

Token · PageRank 0.0045

Also known as: Maker Token

Source: messari.io

Overview

MKR is the governance token of the MakerDAO protocol (now rebranded as Sky), a DeFi platform that issues the DAI stablecoin (now also offered as USDS). Holders vote on protocol parameters and risk management decisions, and MKR acts as a backstop asset: when the system is undercollateralized, new MKR is minted and sold to recapitalize the protocol. Following the Sky rebrand, MKR is being upgraded to the SKY token at a rate of 1 MKR to 24,000 SKY; as of 2026 this migration is largely complete and SKY is the primary governance token, though MKR still exists and remains convertible.

Within the DeFi Intel graph, MKR connects to 5 tracked entities, most strongly to SKY, SKY, MakerDAO / Sky.

Relations

Top connections in the DeFi Intel knowledge graph (confidence-weighted, 5 of 5 total).

Frequently asked questions

What is MKR used for?

MKR serves as a governance token allowing holders to vote on changes to the MakerDAO protocol, such as collateral types and stability fees. It also functions as a recapitalization resource: if DAI’s collateral pool falls short, new MKR is minted and auctioned to cover the deficit.

How does MKR maintain DAI's peg?

MKR is not directly used to maintain the peg; that role is fulfilled by the protocol’s smart contracts (e.g., through fees and liquidation). However, MKR governance votes on parameters that influence DAI stability, and MKR’s minting mechanism provides a final backstop for system solvency.

What happens if the Maker system becomes undercollateralized?

If DAI’s total collateral value falls below required thresholds, the protocol triggers a global settlement process. As part of that, MKR is minted and auctioned to raise capital to cover remaining debts, increasing MKR supply and diluting existing holders.

What is MKR connected to?

In the DeFi Intel knowledge graph, MKR is linked to 5 other tracked entities, most strongly to SKY, SKY, MakerDAO / Sky.