MKR is the governance token and recapitalization source of the Maker Protocol. As a governance token, MKR is used by its holders to vote on a number of different things. Voting is used to execute changes to parameters inside of the Maker Protocol like Stability Fees, the DSR, Debt Ceilings, and many others. Voting is also used to make decisions on the non-technical aspects of the protocol like asset priority lists, governance processes, role mandates, and even electing individuals to fill specific roles. The token also acts as a source of recapitalization when the Maker Protocol runs at a deficit. The possibility of MKR token supply Dilution gives holders a strong incentive to govern the system well. Inversely, the destruction of MKR through the auctioning of Dai from the system’s excess surplus further incentivizes holders to govern the system well.
