Maker Accelerates MKR to SKY Migration Post-Rebrand to Remove Confusions
Decentralized finance (DeFi) platform Sky, previously known as Maker, is fast-tracking the transition from MKR to SKY tokens as part of its ongoing rebrand, which began in August.
Co-founder Rune Christensen announced the shift in a year-end update on December 18, emphasizing that a full migration push will take place in 2025.
Christensen explained that the move aims to eliminate confusion surrounding the MKR and SKY tokens.
New Proposals to Make Migration a Requirement
He assured MKR holders that their funds remain secure, but added that “new upcoming proposals make migration a requirement in order to get usability out of the token.”
Sky’s leadership plans to provide more updates and specifics about the MKR-to-SKY transition next year.
According to Christensen, the overarching goal is to ensure that major platforms like CoinGecko and crypto exchanges exclusively support SKY, leaving MKR as a “legacy wrapper” representing 24,000 SKY for each MKR.
The shift follows a key governance vote on November 11, where Sky’s stakeholders approved SKY as the ecosystem’s core token.
The same vote established a deflationary model for SKY, with mechanisms for long-term supply reduction and token burns.
Another major development for 2025 is the introduction of subDAOs, referred to as “Stars.”
Christensen revealed that this new approach allows for the creation of multiple subDAOs with greater operational flexibility.
The subDAOs will operate under a foundation model, which controls workforce incentives and enables quicker decision-making processes.
The first subDAO, called Spark, is set to debut as the inaugural Star in the Sky ecosystem.
Christensen noted that “with the new SKY and Star tokenomics, and the shift to a foundation model, the ability to create Stars becomes a lot easier.”
He also revealed plans to bring in more founders and teams to launch additional Stars in the coming year.
💫Sky end of year update 💫
It’s been a big Q4 for Sky, capping off what is a pivotal year for the project. A brand shift and new front end paved the way for a host of changes to the system, including two upgraded tokens and the activation of native rewards. USDS grew to more…
— Rune (@RuneKek) December 18, 2024
Sky’s brand identity has faced challenges since its August rebrand from Maker.
In October, discussions emerged about reverting to the original Maker name after confusion and backlash.
However, a poll on November 4 saw 79% of tokenholders vote to maintain the Sky brand as the protocol’s official identity.
Maker Rebrands to Sky as Part of ‘Endgame’ Upgrade
Maker’s rebrand to Sky is a key component of its “Endgame” upgrade.
The overhaul introduced USDS as a successor to the DAI stablecoin and SKY as a replacement for the MKR governance token, signaling the protocol’s evolution.
A primary goal of the rebrand was to enhance the decentralization and sustainability of Maker’s governance mechanisms.
Additionally, the launch of “Sky Stars” (formerly SubDAOs) aimed to enable independent business models, token-based governance, and treasury management within the Maker ecosystem.
For users who chose not to transition, DAI and MKR remain as legacy tokens under the Sky protocol.
Meanwhile, new features, such as token rewards for holding USDS, are available through the revamped platform, accessible at sky.money.
However, the transition has stirred controversy.
The crypto community has raised concerns over the “freeze function” in USDS, viewing it as a potential challenge to the decentralization principles MakerDAO has long upheld.
Source: cryptonews.com
