What is Sky (SKY)?
Sky (SKY) is the governance token of the Sky Ecosystem and the technical and functional evolution of MKR. Importantly, all SKY holders can use their SKY tokens to participate directly in Sky Ecosystem Governance through a system of onchain voting, and/or to transfer the voting power of their SKY tokens to a recognized delegate or a contract that they own.
Maker began in 2014, as a small community-governed project responsible for developing the Maker Protocol on the Ethereum blockchain. Maker quickly grew to find success with the development of its DAI stablecoin. DAI enabled the Maker Protocol to become the first decentralized finance (DeFi) liquidity protocol with a product-market fit. The Maker Protocol grew to such an extent that by 2021, effective governance by its monolithic community proved challenging.
While the complexity of Maker had been necessary to pursue the best opportunities in the market, the community felt that there existed scaling issues that ultimately held the project back. The rebrand of Maker to the Sky Ecosystem, in 2024, took the former Maker Protocol to the next level with technology that focuses on resilience and simplicity while remaining decentralized and non-custodial. In short, the Sky Protocol features products and tools, organizational restructuring, and token upgrades — i.e., USDS, the upgraded version of DAI; and SKY, the upgraded version of MKR.
These advancements have vastly improved user experiences and enhanced network resilience while creating more alignment between product users, governance participants and the ecosystem as a whole.
The Sky Protocol was built from the core module of the Maker Protocol, the oldest and one of the largest and most popular decentralized finance (DeFi) protocols in the world.
SKY token holders can participate in Sky Ecosystem Governance by voting directly or delegating their voting power to a delegate or smart contract. By supplying SKY to the non-custodial Staking Engine via the Sky.money app, users can earn USDS-denominated staking rewards and optionally create positions to borrow USDS. Each staking position allows for unique delegate assignments, enabling flexible governance participation. All staking, borrowing, and governance parameters are determined through decentralized onchain voting, with no exit fees and users retaining full control of their assets.
The current price of SKY is available and updated in real-time on Binance.