MakerDAO (now Sky) has switched governance tokens from MKR to SKY

First-generation decentralized finance (DeFi) maker Dao, which changed its name to Sky, has switched governance tokens for decision-making in the ecosystem from existing maker (MKR) to Sky (SKY).

First-generation decentralized finance (DeFi) maker Dao, which changed its name to Sky, has switched governance tokens for decision-making in the ecosystem from existing maker (MKR) to Sky (SKY).

Sky said on Tuesday that it has confirmed SKY as its only governance token, switching its governance token from MKR to SKY.

The decision aims to simplify governance, expand voting participation, and support ecosystem growth.

SKY is Sky Protocol's unified governance token, which will take over all governance functions previously performed by MKR.

Existing MKR holders can upgrade their tokens to SKY at a rate of 24,000 SKY per 1 MKR.

There is also a delayed upgrade penalty. When upgrading after September 18, 1% of SKY receipts will be reduced, and an additional 1% will be reduced every three months. Penalties are waived for previous upgrades.

Liquidation for SKY-based bolts will be suspended during the initial transition period to maintain market stability. The explanation is that normal operations will resume after liquidity recovers.

Earlier in September last year, MakerDao introduced USDS stablecoins and SKY tokens while rebranding to Sky.

"This transition marks the beginning of a new era for Sky Protocol," Sky co-founder Rune Christensen said.