Sky co-founder Rune Christensen called the move a “huge milestone,” noting that the ability to revert to MKR was a key reason exchanges were slow to adopt SKY.


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

- @SkyEcosystem, the DeFi lender formerly known as Maker, is moving to phase out MKR permanently.

Here Are The Details:

- On May 1, it announced a major protocol upgrade: replacing MKR with SKY as the official governance token and introducing staking rewards for holders.

- If approved by Sky’s DAO, the transition will commence in mid-May—and reverting back to MKR will be permanently blocked.

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

- To encourage the shift, Sky proposes a penalty for late adopters. Starting September 18, users upgrading from MKR to SKY will lose 1% of their value, with the fee increasing every three months.

Sky Staking:

- SKY staking will launch weeks after the contract upgrade. Holders will earn a portion of the income generated by Sky’s new stablecoin, USDS.

- USDS has already attracted over $4 billion in migrations, but the legacy stablecoin DAI still holds $3 billion. Sky states it aims to eliminate all fixed costs by the end of 2025—freeing more revenue for SKY buybacks and staking rewards.

- To safeguard the upgrade, Sky will pause SKY liquidations during the early transition phases.

“With this change, exchanges are likely to accelerate adoption of SKY without concerns about liquidity fragmentation,” Christensen said.

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

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

Image: Sky X platform