DAI has no single founder or small group of co-founders. The Maker Protocol and MakerDAO, a decentralized autonomous organization, govern DAI issuance and development. MakerDAO was originally founded by Danish entrepreneur Rune Christensen in 2015, who studied biochemistry and international business in Copenhagen and previously founded the Try China international recruiting firm. The organization is managed democratically by MKR governance token holders, who vote on key decisions proportional to their token holdings.

MakerDAO was founded in 2015 by Rune Christensen. The original Single-Collateral DAI was launched in 2017. Multi-Collateral DAI launched in November 2019, expanding collateral options beyond ETH to include WBTC, LINK, UNI, YFI, MANA, MATIC and other assets. The DAI Savings Rate feature was introduced with the multi-collateral version. During the 2020-2021 DeFi summer DAI grew significantly. In 2022-2023 MakerDAO underwent major governance restructuring with the Endgame Plan. The Spark Protocol and DSR became major growth drivers from 2024 onward.

DAI is an ERC-20 compatible token running entirely on the Ethereum blockchain. The Maker Protocol smart contracts that govern DAI issuance and collateral management are deployed on Ethereum. Users generate DAI by depositing cryptocurrency assets into Maker Vaults, which are self-enforcing smart contracts that automatically manage collateral ratios, liquidation mechanisms, and debt repayment. External assets used as collateral are tokenized on Ethereum before entering the Maker system.

DAI has no maximum supply cap and its total supply is dynamically determined by user demand for borrowing. New DAI is minted when users deposit collateral into Maker Vaults and borrow against it, with collateral ratios typically ranging from 101% to 175% depending on asset risk levels. The system maintains the dollar peg through automatic stabilization mechanisms including Vault liquidation if collateral ratios fall below thresholds. MKR tokens serve as a backstop absorbng excess debt in extreme scenarios, creating a recursive stabilization system.

DAI employs a fully decentralized on-chain governance model where MKR token holders have voting rights on all protocol decisions. Proposals range from adjusting risk parameters and collateral types to major protocol upgrades and budget allocations. Voting power is proportional to MKR holdings and decisions are executed automatically through smart contracts. This democratic structure means no single entity controls DAI issuance or policy, with all governance records publicly visible on the Ethereum blockchain.

DAI is primarily used for decentralized finance activities including trading, lending on platforms like Compound and Aave, and providing liquidity in DeFi protocols. It serves as a stable store of value within the crypto ecosystem for traders to hedge against volatility without leaving the blockchain environment. The DAI Savings Rate allows holders to earn passive income. Cross-border payments and remittances benefit from its stable valuation and low-cost Ethereum-based transfers. Merchants increasingly accept DAI as a dollar-equivalent digital payment method.