According to a report from The Block, the core governance design team of the decentralized lending platform Sky, Atlas Axis, submitted a proposal on Wednesday. If the proposal is approved, it will complete the token upgrade from MKR to SKY, making SKY the sole governance token, and enable staking features, allowing SKY stakers to earn rewards denominated in USDS.
As part of the 'Endgame' plan, Maker underwent a significant rebranding in 2024, renaming itself to Sky, and introduced several new features, including the launch of the decentralized stablecoin USDS (a new version of the native stablecoin DAI) and the governance token SKY to replace MKR. The Sky team stated that if the new proposal is approved, the related plans could be launched within weeks, at which point SKY will completely replace MKR in terms of technology and functionality, assuming its governance rights.
Sky co-founder Rune Christensen expressed support for the Atlas Axis proposal, praising it as a 'huge milestone.' He wrote:
'Completing the full upgrade from MKR to SKY is one of the final pieces for Sky to transition to zero fixed costs by the end of 2025, which will ensure that a greater proportion of the revenue generated by the protocol can be returned to SKY buybacks or SKY staking rewards.'
Christensen noted that staking of SKY tokens will be enabled after the proposal is approved, allowing holders who stake SKY and participate in governance through delegated tokens to earn continuous and permanently valid USDS rewards based on the revenue generated by the Sky protocol (this feature will be accessible through front-end interfaces such as Sky.money).
MKR holders can currently still exchange their tokens for SKY at a fixed ratio (1 MKR: 24,000 SKY). To encourage users to complete the conversion early, starting from September 18, transferring from MKR to SKY will incur a 1% penalty, which will increase by 1% every three months.
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