Sky Ecosystem to Replace Maker with Sky Token

Sky Proposes Transition to Eliminate MKR Token

The SKY proposal initiated by Atlas Axis seeks to finalize the transition from MKR to SKY. A key advocate is Rune Christensen, co-founder of Sky, who underscores the protocol’s shift toward zero fixed costs.

Rune Christensen has played a pivotal role in decentralized finance, originally co-founding MakerDAO. The upgrade aims to maximize protocol efficiency, offering more rewards through SKY governance and staking.

Shift to SKY Token Centralizes Governance

The market is poised for a shift as MKR will phase out in favor of SKY tokens, centralizing governance within the Sky ecosystem. The expected rollover of DAI to USDS enhances the protocol’s stablecoin utility.

While financial impacts from new institutional funding are not evident, the upgrade aims to enhance long-term sustainability and engage more active participants in DeFi activities, driven by historical trends of prior token transitions.

“I fully support the proposal from Atlas Axis to finalize the upgrade from MKR to SKY, and it is great to see them taking the lead on proposing larger scale upgrades to the system like this. Getting past the full upgrade of MKR to SKY is one of the last pieces missing before Sky can transition to zero fixed costs at the end of 2025, which will ensure an even greater portion of the income the protocol generates goes to the benefit of SKY buybacks, or SKY staking rewards.”

Rebranding Expected to Drive Market Volatility

Past rebranding, such as Synthetix SNX v3, often induces market volatility and enhances protocol decentralization. A similar trajectory is anticipated for the Maker to Sky transition, with community support evident.

Experts from Kanalcoin suggest the Sky upgrade promises improved governance and staking effectiveness, grounded in trends from previous redesigns, offering insiders and participants a robust ecosystem.