$Sky Pushes Final Maker Upgrade: New Token, Staking Coming Soon

- @SkyEcosystem, the DeFi lender formerly known as Maker, is moving to drop $MKR for good.

Here Are The Details:

- On May 1, it proposed a major protocol upgrade: replace $MKR with $SKY as the official governance token and enable staking rewards for holders.

- If approved by $Sky’s DAO, the transition will begin mid-May—and downgrading back to $MKR will be permanently blocked.

- Rune Christensen, $Sky’s co-founder, called it a “huge milestone.” He noted the $MKR fallback was a major reason exchanges hesitated to fully support SKY.

- To push the shift, $Sky proposes a penalty for late movers. Starting Sept. 18, users upgrading from $MKR to $SKY will lose 1% of value, with the fee rising every three months.

$Sky Staking:

- $SKY staking will launch weeks after the contract upgrade. Holders will earn part of the income from $Sky’s new stablecoin, USDS.

- $USDS has already drawn over $4B in migrations, but legacy stablecoin DAI still holds $3B. $Sky says it’s on track to cut all fixed costs by the end of 2025—freeing more revenue for $SKY buybacks and staking rewards.

- To protect the upgrade, $Sky will pause $SKY liquidations during early transition stages.

“With this change, exchanges are likely to move faster in quickly adopting $SKY without concerns about fracturing liquidity,” Christensen said.

- The final upgrade marks the near-completion of $Sky’s “Endgame” plan—breaking Maker into subDAOs like Spark (a fork of Aave v3), and rolling out $USDS on Solana, Base, and Arbitrum.

- If the DAO gives the green light, Maker will finally fade into history—this time for good.

Image: $Sky X platform