DAI Use Cases

The main utility or DAI use cases is for voting on the management of the protocol. Each MKR token equals one vote when locked in a voting contract. The users commit their Maker tokens to a proposal with the final result being decided by the number of tokens that it received and not the MKR holders.

Maker tokens have value as a recapitalization resource because the supply can increase if the system debt goes over the surplus. The incentives Maker token holders to avoid excessive risk-taking and to govern the ecosystem responsibly. Maker’s price is volatile so MKR isn’t really used as a means of exchange but there are people that could choose it as a speculative investment.

You can use DAI as any other stablecoin and trade it against other crypto assets and use it to pay for other things. If the CDP stuff isn’t for you, don’t worry as there are other cryptocurrencies and Dai can be bought on a crypto exchange like Binance. MakerDAO was one of the earliest Decentralized Finance protocols and it is essentially a decentralized stablecoin that is all about building a financial system on the blockchain.

There’s a growing list of products that accept DAI. There are also defi-oriented decentralized applications where it can be used like SushiSwap and PoolToegehr along with a plethora of yield farming systems. According to the whitepaper, Maker’s protocol can be used for issuance and maintenance of the Dai stablecoin that can even fulfill the role of the digital dollar. It can be used for asset expansion or to issue alternative assets similar to Dai with the help of the protocol.

The main use case for the token MKR is to influence these broad development directions and can be used to pay for the outstanding stability fees on the Dai Debt closing along with Dai. If you want to use the protocol, It could be a good idea to learn where and how to buy MKR.