Sky pitches ousting Maker token, enabling staking, to complete upgrade
Sky has proposed an upgrade to its decentralized finance (DeFi) platform, replacing the Maker (MKR) governance token with the Sky (SKY) token. If accepted by the DAO, the transition will occur between May 15 and May 19, disabling downgrades from SKY to MKR. Co-founder Rune Christensen supports the proposal, stating it will facilitate exchange adoption of SKY by eliminating liquidity concerns. A 1% penalty for delayed upgrades from MKR to SKY will be implemented starting September 18, increasing quarterly. SKY staking will be enabled post-upgrade, with rewards for the decentralized stablecoin USDS commencing two to three weeks later. Liquidations of SKY will be paused during the transition to mitigate price manipulation risks. The Maker brand was rebranded to Sky in August 2022, and a November poll confirmed tokenholders' preference to retain the Sky name.
