Sky (formerly Maker) Embarks on Massive Rebranding to Significantly Transition to a More Relatable Identity

CNF recently reported that Sky (formerly Maker) has embarked on a massive rebranding to significantly transition to a more relatable identity

DeFi lending platform CNF recently reported that Sky (formerly Maker) is making a massive rebranding effort to transition to a more relatable identity and upgrade its stablecoin (USDS) to make it accessible to the masses.

In October, the platform considered reverting to its original Maker name after confusion and negative feedback built up among community members. Making this significant decision through a voting exercise, 79.3% of the community members voted in support of the new brand.

Highlighting the next possible action, the co-founder of the platform, Rune Christensen, disclosed that the platform would embark on a full migration next year from MKR to SKY to remove the confusion surrounding the token. Explaining this in an X post, Christensen stated that the process would not put holders in a position where they could lose their funds. However, the plan is to ensure that analytical platforms and exchanges support SKY only.

This will not put MKR holders in a position where they can lose their funds, but instead, new upcoming proposals make migration a requirement to get usability out of the token. More updates on the effort to do a full migration and conversion of MKR to SKY will be provided in the upcoming year, and the goal is to ensure that Coingecko and exchanges all support SKY only, and MKR becomes simply a legacy wrapper that represents 24,000 SKY per MKR.

The Sky Tokenomics

Speaking on tokenomics, the co-founder highlighted that the recent governance vote indicated that the tokenomics of SKY and MKR are deflationary. This implies that there is no possibility of token emission excerpt when “the protocol is insolvent and its stablecoin (USDS/DAI) is at risk.”

In all normal times, the income of the Sky Protocol would be used to “buy and burn” to make the tokens deflationary. Meanwhile, the existing Sky emissions to USDS holders would be funded via Sky’s protocol reserve. According to him, this would fully preserve the original tokenomics of MKR and migrate to Sky.

Sky Tokenomics Update: USDS / DAI Peg Maintenance

After the activation of native USDS rewards earlier this year, the next major tokenomics change for Sky is now live on Mainnet. Together with the launch of the foundational model and Stars, this completes the tokenomics transition.

Analyzing the post, we observed that there could be new improvements as Sky token holders would have rewards via the “Activation and Seal Engine feature.” With this, Sky holders would be able to seal their tokens and earn token rewards in the form of USDS as well as Star tokens. According to Christensen, the new Sky and Star tokenomics, as well as the transition to the foundational model, would simplify the process of creating Stars. He also disclosed the plans to recruit founders and teams to create their own Stars next year.

Next year, Sky will begin a process of onboarding additional founders and teams to create their Stars to pursue all of the opportunities that exist within the Sky Ecosystem, such as expanding to new blockchains, focusing on new verticals, and tapping into new user bases. Starting a Star is a huge opportunity that gives skilled teams a boost out of the gate through a fully bootstrapped Stablecoin business model and access to large amounts of liquidity from the USDS collateral portfolio.

At press time, Sky was trading at $1,719 after declining by 14% in the last 24 hours.