Sky Intensifies the Transition From Its MKR Token to the New SKY Token as Part of Its Rebranding Process

Rune Christensen, co-founder of the protocol, announced in a year-end update that this change will accelerate throughout 2025 with the goal of consolidating the new token as the core of its ecosystem.

Sky, formerly known as Maker, is ramping up the transition from its MKR token to the new SKY token as part of its rebranding, which began in August 2024. Rune Christensen, co-founder of the protocol, announced in a year-end update that this shift will accelerate throughout 2025, aiming to establish the new token as the core of its ecosystem and eliminate confusion between the two tokens.

According to Christensen, while MKR holders’ funds are safe, upcoming proposals will make the migration necessary to fully utilize the token’s functionalities. The goal is to have platforms like CoinGecko and major crypto exchanges support SKY exclusively, leaving MKR as a residual token valued at 24,000 SKY per unit.

The transition to SKY was approved by the community in a governance vote in November, which also introduced a deflationary model for the new token, along with mechanisms to reduce its long-term supply through token burns. The restructuring also includes the creation of subDAOs, called “Stars,” which will have greater operational flexibility and autonomy within the ecosystem.

The first “Star,” named Spark, will be launched soon and will serve as an initial model for these suborganizations. This strategy will help integrate new teams and founders into the ecosystem, fostering decentralization and innovation, said Christensen. The Stars, which will be governed by a foundation model, will allow for more agile management of incentives and strategic decisions.

The transition from Maker to Sky has faced challenges since its announcement, including discussions about reverting to the original name after it caused confusion within the community. However, a poll in November showed strong support, with 79% of respondents voting to keep the new brand identity. The rebranding is part of the “Endgame” upgrade, which also introduced USDS as the successor to the DAI stablecoin.

The transition has also been met with controversy, mainly due to the inclusion of a freeze function in USDS, which some argue goes against the principles of decentralization that MakerDAO has historically championed. Despite these critiques, Sky is charting a course towards a more sustainable and decentralized ecosystem, offering new capabilities through its platform.