CoinVoice has recently learned that, according to The Block, Sky's core governance design team Atlas Axis submitted a proposal on Wednesday that, if approved, will complete the upgrade of the protocol from MKR to SKY. This change will make SKY the sole governance token of the protocol and enable staking features, providing USDS rewards to SKY holders.
According to the proposal, existing MKR holders can upgrade to SKY at a fixed rate of 1 MKR:24,000 SKY. Like MKR, SKY allows holders to vote on governance proposals for the Sky ecosystem or delegate their votes.
To encourage timely migration, starting from September 18, converting MKR to SKY will incur a 1% penalty, which will increase by 1% every three months thereafter. Governance will transparently manage these penalties, aimed at rewarding early adopters and supporting long-term stability.
If approved, the proposal could be activated within weeks, and SKY will inherit the governance voting rights previously held by MKR, marking an important turning point in the development of the Maker/Sky ecosystem. [Original link]
