TL;DR
- Sky accelerates the migration from Maker to SKY as part of its rebranding to consolidate the new token and eliminate confusion.
- SubDAOs, referred to as “Stars,” will be introduced to provide operational flexibility and autonomy within the ecosystem.
- The transition faces controversies, particularly due to the freeze function in USDS, though Sky continues to focus on decentralization.
Sky, formerly known as Maker, has intensified the transition from its MKR token to the new SKY token as part of its rebranding process initiated in August 2024. 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 and eliminating confusion between the two tokens.
According to Christensen, although MKR holders’ funds remain secure, some new proposals will make migration essential to fully utilize the token’s functionalities. The goal is to ensure that platforms like CoinGecko and major cryptocurrency exchanges exclusively support SKY, leaving MKR as a residual token representing 24,000 SKY per unit.
The transition to SKY was approved by the community in a governance vote held in November. This process also introduced a deflationary model for the new token, along with mechanisms aimed at reducing its long-term supply through token burns. Furthermore, the restructuring includes the creation of subDAOs, called “Stars,” which will provide greater operational flexibility and autonomy within the ecosystem.
Challenges in MakerDAO’s Transition
The first “Star,” named Spark, will be launched soon and will serve as an initial model for these suborganizations. According to Christensen, this strategy will facilitate the inclusion of new teams and founders in the ecosystem, fostering decentralization and innovation. The Stars, operated under a foundation model, will allow for more agile management of incentives and strategic decisions.
The transition from Maker to Sky has been challenging since its inception, including debates about reverting to the original name after causing confusion within the community. However, a poll conducted in November showed majority support, with 79% of respondents voting to maintain the new brand identity. The rebranding is part of the “Endgame” upgrade, which also introduced USDS as the successor to the DAI stablecoin.
Nevertheless, the transition has been controversial, primarily due to the inclusion of a freeze function in USDS, which some perceive as contrary to the decentralization principles historically upheld by MakerDAO. Despite these criticisms, Sky is moving towards a more sustainable and decentralized ecosystem, offering new functionalities through its platform
