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What Is the Role of the MKR Token in the MakerDAO Ecosystem?

It is the governance token for voting on risk parameters and serves as the last-resort capital backstop for the protocol's solvency.
Greeks.Live22.11.25

What Is the Role of the MKR Token in the MakerDAO Ecosystem?

The MKR token is the governance token of the MakerDAO ecosystem. Its holders are responsible for managing the protocol's risk by voting on key parameters, such as stability fees, collateral types, and the liquidation ratio.

Crucially, MKR also acts as a last-resort backstop. If the system faces a deficit due to unrecoverable debt from liquidations, new MKR tokens are minted and sold to recapitalize the system, diluting existing holders.

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