MakerDAO is a decentralized autonomous organization and smart contract system built on Ethereum, which introduced Dai, the first decentralized stablecoin on the Ethereum network. The MKR token serves two essential functions within the Maker system: governance and recapitalization. MKR holders are responsible for governing the Maker Protocol, which includes key decisions on Dai's stability mechanism, collateral selection, and loan interest rates. As part of the Endgame Plan initiated by co-founder Rune Christensen in 2023, the system has undergone significant upgrades to streamline governance and further decentralize the protocol. This includes the introduction of SubDAOs, such as SparkDAO, which focuses on decentralized lending, and SkyDAO, another independent unit that adds layers of governance autonomy​.

MKR also plays a crucial role in the recapitalization mechanism of the system. When system debt exceeds the surplus, additional MKR tokens are minted and sold as Dai in debt auctions to stabilize the system. Conversely, when there is a surplus, Dai is used to purchase and burn MKR tokens through surplus auctions. In 2024, the Smart Burn Engine continued its role in stabilizing the MKR supply by purchasing tokens from the market and burning them​.

A key development in 2024 was the announcement of a MKR-to-SKY token swap, part of the broader Endgame strategy to transition to a more decentralized governance model. This swap allows MKR holders to exchange their tokens for SKY, which represents governance in the SkyDAO ecosystem. This move is designed to further decentralize governance by distributing power across multiple subDAOs, giving holders a choice of where to participate​.

MakerDAO’s Endgame Plan also introduced NewStable (NST) and NewGovToken (NGT), with optional upgrades for Dai and MKR holders. As part of this transformation, the goal is to scale Dai to a market cap of $100 billion while maintaining a high level of decentralization through the subDAO system.

Above are only for introduction, not intended as investment advice.