Soaring to New Heights The Launch of Sky Token and its Synergy with MKR

August 29, 2024 · 32 min read

Edited by paul

Summary of Sky Token and its Relationship with MKR

The new Sky token is a governance token introduced by MakerDAO, now rebranded as Sky, as part of its overhaul to scale the protocol to a 'gigantic size'. The existing MKR governance token will remain in circulation unchanged, with the new Sky token existing in parallel.

Key Details

  • Total Tokens in Circulation: No information is available on the total number of Sky tokens in circulation.
  • Conversion Rates: Each MKR token can be swapped for 24,000 Sky tokens.
  • Token Exchange: Token holders can voluntarily choose to keep the old tokens or exchange them for the new ones.
  • Rewards Accrual Function: The rewards accrual function will be restricted for certain jurisdictions, including the US and UK.

Relationship with MKR

  • The existing MKR governance token will remain in circulation unchanged.
  • The new Sky token will exist in parallel with the MKR token.
  • Token holders can exchange their MKR tokens for Sky tokens at a rate of 1:24,000.

Additional Information

  • The rebranding aims to enhance DeFi accessibility and user experience.
  • The new tokens will be available on September 18, with a new DeFi application to interact with the protocol.
  • The rebranding has drawn both positive and negative reactions from the crypto community, with some users expressing concerns about the new token's remote freeze feature.

Reference Analyses Performed

the following is the analyses performed by the Analyst as part of this content.

1. Maker brand undergoes rebranding and introduces new tokens.

Recent developments in the Maker brand highlight a significant rebranding to "Sky" and the introduction of new tokens. On August 27, 2024, MakerDAO announced the launch of its new governance token (SKY) and stablecoin (USDS), aiming for a stronger foothold in the decentralized finance (DeFi) space. This rebranding also encompasses a strategy that includes the rollout of governance and stable currencies which will enhance its offerings beyond the existing DAI and MKR tokens. More details were discussed in an article on CoinDesk.
In addition, Rune Christensen, the founder of MakerDAO, proposed a dedicated blockchain for further enhancing project scalability and token functionalities. This initiative is aimed at optimizing the ecosystem for existing and new tokens such as NewStable and NewGovToken, which will coexist with current tokens like DAI and MKR, as detailed in the announcement on The Defiant. These strategic updates signal Maker's commitment to innovation within the crypto space and reflect its adaptive market-driven approach.
Sources: tokenomic details in Maker brand crypto blockchain:

2. Recent MakerDAO Tokenomic Updates and Changes

Recent updates on MakerDAO indicate two significant developments concerning its tokenomic structure. Firstly, just 6 days ago, MakerDAO announced upgrades for the MKR and DAI tokens, although details reveal some caveats that might impact investor sentiment, as discussed in a CoinGape article.
In addition, about two weeks ago, there was a crucial decision by MakerDAO to consider offboarding Wrapped Bitcoin (WBTC) amid an ongoing restructure affecting this asset, which is likely to influence liquidity and user engagement. This concern is underscored by a report from The Defiant about security and operational adjustments. Furthermore, MakerDAO has halted new WBTC-backed loans due to security concerns, compounding the urgency surrounding changes in the Maker ecosystem as noted by Coinspeaker.
Sources: Maker tokenomic updates crypto blockchain:

3. MakerDAO Rebrands to Sky: New Tokens and Tokenomics

MakerDAO Rebrands to Sky: New Token Names, Systems, and Tokenomic Details

MakerDAO, a prominent player in the decentralized finance (DeFi) space, has undergone a significant rebranding to "Sky". This change is accompanied by the introduction of new tokens, including a governance token (SKY) and a stablecoin (USDS). The rebranding is part of MakerDAO's strategy to enhance its offerings beyond the existing DAI and MKR tokens.

New Token Names and Systems

  • SKY: The new governance token, which will coexist with the current MKR token.
  • USDS: The new stablecoin, designed to provide a more stable store of value.
  • NewStable and NewGovToken: Proposed tokens that will be part of the new dedicated blockchain.

Tokenomic Details

  • The new tokens will be part of a dedicated blockchain, proposed by Rune Christensen, the founder of MakerDAO.
  • The blockchain will optimize the ecosystem for existing and new tokens.
  • The tokenomic details are designed to enhance the project's scalability and token functionalities.

Recent Updates on MakerDAO

  • Upgrades for MKR and DAI tokens have been announced, with some caveats that may impact investor sentiment.
  • MakerDAO is considering offboarding Wrapped Bitcoin (WBTC) amid an ongoing restructure affecting this asset.
  • New WBTC-backed loans have been halted due to security concerns.

Sources

4. MakerDAO rebrands to Sky, new tokens launched.

In a significant development for the decentralized finance (DeFi) landscape, MakerDAO has officially rebranded to "Sky" and announced the launch of two new tokens: the USDS stablecoin and the SKY governance token. This transformation was reported in various reliable sources including CoinDesk just one day ago. The rebranding signifies a new strategic direction for the $7 billion crypto lending platform, aiming to enhance its offerings within the DeFi space.
The move to "Sky" comes at a time when the Maker Protocol is looking to solidify its position in the competitive blockchain ecosystem. Alongside the introduction of SKY and USDS, Maker aims to improve the user experience in decentralized lending, as noted by CryptoSlate. These developments are set for a more extensive rollout, with further details expected in the coming weeks, particularly around the governance model that will accompany the new tokens.
Sources: sky token and MKR crypto blockchain:

5. MakerDAO rebrands to Sky with new stablecoin USDS.

In the latest round of news, MakerDAO has officially rebranded to "Sky," marking a significant transformation in its ecosystem. This rebranding includes the introduction of the USDS stablecoin, which will serve as an upgrade option for the existing DAI stablecoin. Various articles, including reports from The Defiant and The Block, highlight these updates published just a day ago.
Industry responses have been mixed, with some members of the DeFi community expressing concerns about the implications of such a major shift, particularly in regards to decentralization, as noted by BeInCrypto. Additionally, there are clarifications from the MakerDAO founder regarding a freeze function that has drawn backlash, as covered by Coinspeaker. The transformation is described across multiple platforms, further showcasing the prominent changes taking place within the Maker ecosystem.
Sources: conversion rates between Sky and MKR crypto blockchain:

6. MakerDAO rebrands to Sky, new tokens coming soon.

Recently, MakerDAO underwent a rebranding to become 'Sky' and is set to launch two new tokens on September 18, 2024, which marks a significant shift in its operational framework. This transition is accompanied by the introduction of a new stablecoin, reflecting an evolution aimed at enhancing its governance and market position. This news was reported on CoinDesk just yesterday, providing an updated perspective on the MakerDAO ecosystem.
Moreover, further insights on this transformation were echoed in a report from TradingView only a few hours ago, emphasizing the upcoming changes to the token structure and the overall implications for investors and market participants. This strategic move could influence the circulation and utility of the new tokens as they enter the market.
Sources: total tokens in circulation for Sky crypto blockchain:

7. Sky token emerges from MakerDAO rebranding

The recent rebranding of MakerDAO to Sky introduces significant changes in its token structure, connecting the new SKY token directly to its predecessor, MKR. Each MKR token can now be exchanged for 28,000 SKY tokens, while existing DAI stablecoin holders can upgrade their tokens to the new USDS stablecoin at a 1:1 ratio. This transformation positions SKY as the governance token within the enhanced decentralized finance (DeFi) ecosystem being developed under the Sky brand. Notably, the transition is part of a broader initiative to improve user experience and bolster the protocol's functionality.
This information is corroborated by multiple reputable sources, including Coindesk and The Defiant. The upgrade reflects MakerDAO's strategy to evolve its offerings while maintaining the original valuation infrastructure for its users. Thus, the relationship between SKY and MKR symbolizes a revolutionary step for the Maker ecosystem, marking a new phase in its governance and operational capabilities.
Sources: relationship between Sky token and MKR crypto blockchain:

8. MKR converts to 24,000 SKY tokens post-rebranding.

The recent rebranding of MakerDAO to Sky introduces significant conversion rates between MKR and SKY tokens. Each MKR token can be converted into 24,000 SKY tokens. This conversion rate is consistent across multiple reputable sources, including a report from The Defiant and coverage by CoinDesk. In addition, DAI holders can swap their tokens one-to-one for the new USDS stablecoin, indicating a clear transition within the Maker ecosystem.
For investors and crypto enthusiasts, this means that for every MKR held, you can expect to receive a significant amount of SKY as part of the token migration process. The transition is not just a change in branding but also a potential shift in how the Maker ecosystem operates moving forward, creating new opportunities within this restructured landscape. Further details are available in articles from The Block and other sources that track these changes closely.
Sources: Sky to MKR conversion rate crypto blockchain:

9. Total SKY tokens and circulating supply insights

The total number of SKY tokens in existence is capped at 100 million, as stated in the Sky Tokenomics. However, the circulating supply of SKY tokens is currently not available. It is noted that 83% of the tokens are designated for public distribution. For additional details regarding market performance, you can explore resources like CoinMarketCap or CoinGecko, which provide ongoing updates about the price and market cap of Skycoin.
Sources: total tokens in circulation for Sky crypto blockchain:

10. MakerDAO rebrands to Sky, introduces USDS stablecoin and SKY token

MakerDAO, a major DeFi lending protocol, has announced a rebrand to Sky and the introduction of a new stablecoin USDS and governance token SKY. The changes are part of the ongoing overhaul of the protocol aimed at scaling it to a 'gigantic size'. The existing DAI stablecoin and MKR governance token will remain in circulation unchanged, with the new tokens existing in parallel. Token holders will be able to exchange DAI tokens 1:1 for USDS and each MKR token can be swapped for 24,000 SKY tokens. The new tokens will be issued on 18th September and holders can voluntarily choose to keep the old tokens or exchange for the new ones. The rewards accrual function will be restricted for certain jurisdictions including the US and UK. The protocol will also be broken up into smaller, independent entities with their own tokens, which will be named Stars.
Referenced URLs ingested:

11. MakerDAO Rebrands to Sky

MakerDAO has rebranded to Sky, introducing a new stablecoin called $USDS and a native governance token named $SKY. The rebranding aims to enhance DeFi accessibility and user experience. According to @SkyEcosystem, the new tokens will be available on September 18 with a new DeFi application to interact with the protocol. The protocol's established tokens, DAI and MKR, will remain in place. The rebranding has drawn both positive and negative reactions from the crypto community, with some users expressing concerns about the new token's remote freeze feature.
@DasAbhyudoy and @indexcoop have provided updates on the rebranding, highlighting the changes and their potential impact on the DeFi space. Meanwhile, @Techmeme has reported on the backlash against the new token, citing concerns about its centralization.
@SkyEcosystem has announced that the new tokens will be available on September 18, and has encouraged users to follow the thread for the latest news and updates about SkyLaunch.
Relevant Tweets I found: