In a bid to speed up the migration from MKR to SKY in the new year, decentralized finance (DeFi) lending platform Sky is taking concrete steps following its massive rebranding effort in August. As part of its strategy, Rune Christensen, co-founder of Sky, announced on December 18 that more efforts will be directed towards a full migration of MKR to SKY in 2025.
Background and Goal of Migration
According to Christensen, the main goal behind this move is to remove any confusion surrounding the MKR vs. SKY tokens. By migrating fully from MKR to SKY, Sky aims to enhance usability for its token holders. In his statement, Christensen emphasized that this migration will not put token holders in a position where they can lose their funds.
However, instead of making it optional, new upcoming proposals make migration a requirement in order to get usability out of the token.
Conversion Process and Timeline
Christensen mentioned that updates and more details on the migration and conversion process will be shared sometime in 2025. He also highlighted the ultimate goal: ensuring that CoinGecko and exchanges all support SKY only, with MKR becoming a legacy wrapper representing 24,000 SKY per MKR.
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.
Recent Governance Vote
In a November 11 governance vote, stakeholders decided that SKY would serve as the core token for the ecosystem. In the same poll, it was also decided that tokenomics should be defined as deflationary and supported by long-term supply reduction and a burn mechanism.
Tokenomics should be defined as deflationary and supported by long-term supply reduction and a burn mechanism.
Expansion of Star DAOs in 2025
Sky also plans to launch more subDAOs in 2025, known as Stars. Christensen explained that the change to SKY’s tokenomics, making it deflationary, opened the door for a new strategy where more can be launched and have freedom to act.
The change to SKY's tokenomics, making it deflationary, opened the door to a new Star strategy where more can be launched and have freedom to act.
Launch of First SubDAO – Spark
As part of this new model, subDAOs will launch with a foundation that controls the workforce bonus pool and makes quick decisions. The first subDAO, Spark, is on track to launch as the first Star in the Sky ecosystem and will use the foundation model.
With the new SKY and Star tokenomics and the shift to a foundation model, the ability to create Stars becomes a lot easier.
Onboarding of Additional Founders and Teams
Next year, Sky will begin a process of onboarding additional founders and teams to create their own Stars. This is made possible by the new SKY and Star tokenomics and the shift to a foundation model.
Next year, Sky will begin a process of onboarding additional founders and teams to create their own Stars.
Rebranding Controversy
Sky considered reverting back to its original Maker name in October after apparent confusion and negative feedback over its August rebrand. However, a majority of token holders voted against this decision, with 79% voting to keep the Sky brand instead.
The Nov. 4 poll saw 79% of token holders vote to keep the Sky brand as the back end protocol brand with no further changes.
Conclusion
Sky’s effort to speed up the migration from MKR to SKY in the new year is a significant step towards enhancing usability for its token holders and reducing confusion. The company’s commitment to innovation, including the launch of more subDAOs and onboarding additional founders and teams, positions it for future growth and success.
Additional Reading
- 5 Real Use Cases for "Useless" Memecoins: Explore the practical applications of these tokens in real-world scenarios.
- Crypto Biz Newsletter: Receive a weekly snapshot of key business trends in blockchain and crypto, from startup buzz to regulatory shifts. Gain valuable insights to navigate the market and spot financial opportunities.
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