Listen up, my friend, the MKR token has quite a story. It's like the "big boss" that holds an entire financial system on the blockchain called the "Maker Protocol." Imagine having a big bank that operates in a decentralized way, meaning there's no single person in control, and the MKR is the currency that has the final say inside this bank.
So what exactly does the Maker Protocol do? It is responsible for a stablecoin called DAI, which is always worth approximately one dollar. Now, what’s the relation between MKR and DAI? The MKR has two very important roles.
The first role is "governance," meaning that people holding MKR tokens can vote on important decisions regarding the Maker Protocol system, such as adding new types of collateral that people can use to get DAI or changing the fees imposed on loans. In simple terms, they have the final say on any decision regarding the system.
The second role is that of a "savior" in times of trouble. If any issues arise in the system and the prices of the collateral that people have put in drop significantly, the Maker system can hold auctions to sell MKR tokens to cover the losses and maintain the stability of the DAI currency. This makes the value of MKR closely tied to the success and stability of the entire Maker system.
So, MKR is not just a currency whose price goes up and down like other tokens; it plays a vital role in managing a large and important financial system in the world of currencies.