Maker is a smart contract platform on Ethereum that backs and stabilizes the value of Dai through a dynamic system of Collateralized Debt Positions (CDPs), autonomous feedback mechanisms, and appropriately incentivized external actors.
Maker enables anyone to leverage their Ethereum assets to generate Dai on the Maker Platform. Once generated, Dai can be used in the same manner as any other cryptocurrency: it can be freely sent to others, used as payments for goods and services, or held as long term savings. Importantly, the generation of Dai also creates the components needed for a robust decentralized lending platform.
MKR Token Governance
In addition to payment of the Stability Fee on active CDPs, the MKR token plays an important role in the governance of the Maker Platform.
Governance is done at the system level through election of an Active Proposal by MKR voters. The Active Proposal is the smart contract that has been empowered by MKR voting to gain administrative access to modify the internal governance variables of the Maker Platform.