$Sky community new proposal: $Sky to replace $MKR as the sole governance token, with staking and $USDS rewards

According to The Block, $Sky's core governance design team, Atlas Axis, has submitted a proposal that, if approved, will upgrade the protocol from $MKR to SKY. This transition will make $SKY the exclusive governance token and enable staking functionality, unlocking $USDS rewards for $SKY holders.

$Sky co-founder Rune Christensen described this as a "major milestone," believing the proposal will help $Sky achieve a zero fixed-cost transformation by the end of 2025. If approved, and activated within a few weeks, $SKY will inherit $MKR's governance voting rights. Existing $MKR holders can upgrade to $SKY at a fixed rate of 1:24,000 and participate in governance proposals or delegate their votes. Starting September 18, $MKR to $SKY conversions will face a 1% penalty, increasing by 1% every three months thereafter. The initial $SKY staking vault will disable liquidation functions, with plans to restore them later. Governance rights will be transferred to the new contract, with the transition scheduled from May 15 to 19 (subject to on-chain voting).