Maker (MKR) is a governance token associated with the MakerDAO and Maker Protocol, both of which are built on the Ethereum blockchain. The primary function of Maker is to manage DAI, a decentralized cryptocurrency that aims to maintain a stable value closely tied to the US dollar. MKR tokens do not provide dividends to their holders, but they do grant voting rights over the development of the Maker Protocol. The value of MKR tokens may fluctuate based on the performance of DAI. The Maker ecosystem is a project in the decentralized finance (DeFi) space, which seeks to create decentralized financial products on smart-contract-enabled blockchains like Ethereum.

Maker operates by allowing its token holders to participate in the governance of DAI. Every holder of Maker tokens has the right to vote on various changes to the Maker Protocol, with their voting power proportional to the size of their MKR stake. Some of the aspects of the protocol that holders can vote on include adding new collateral asset types to the protocol, amending the risk parameters of existing collateral asset types, changing the DAI Savings Rate, choosing the oracles, and implementing upgrades to the platform. The ability to participate in the management of one of the stablecoins on the market may influence the demand for MKR tokens.

Maker's primary use case is to provide a decentralized governance system for the DAI stablecoin. By holding MKR tokens, users can participate in the decision-making process that shapes the future of the Maker Protocol. This includes voting on potential upgrades, selecting trusted oracles, and deciding on risk parameters for different collateral types. Additionally, the Maker Protocol allows users to generate DAI by depositing collateral assets into Maker Vaults. This provides a way for users to access liquidity, making Maker a component in the broader DeFi ecosystem.

MakerDAO, the first entity within the larger Maker ecosystem, was established in 2015 by Rune Christensen, a Danish entrepreneur. Christensen, who holds a degree in biochemistry from Copenhagen University and studied international business at the Copenhagen Business School, co-founded and managed the Try China international recruiting company prior to creating MakerDAO. The Maker project was conceived in 2015 and fully launched in December 2017. It was one of the early projects in the DeFi space and has since played a role in the growth and development of decentralized finance.