Plain English
MakerDAO is the protocol that issues DAI, the longest-running decentralized stablecoin. MKR is the governance token and also the residual claimant — when the system runs surplus, MKR is bought back and burned; when it runs deficit, new MKR is minted and sold to recapitalize.
How it actually works
Users lock ETH, stETH, USDC, and various real-world-asset collateral in vaults to mint DAI. Stability fees (interest on DAI debt) flow to protocol revenue. MakerDAO has invested heavily in tokenized US Treasuries and traditional credit assets as collateral, making the system increasingly dependent on real-world yield. The “Endgame” plan launches subDAOs and a new token (NewGov/SKY).
What it means for you
MKR is the longest-tenured DeFi governance token with the most institutional-grade balance sheet. For HNW positioning, MKR is a defensive DeFi allocation — strong cash flow, ongoing buyback, real-world-asset diversification. Watch the Endgame migration carefully as it affects MKR holders directly.
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Educational content only. Not investment, tax, or legal advice.