The upgrade from the $MKR token to the $SKY token marks a major step forward for Sky Protocol governance, infrastructure, and ecosystem.

Here’s what you need to know:

→ This upgrade process is voluntary and non-custodial for MKR holders.

→ MKR holders retain full control and can choose when to initiate the upgrade via a smart contract.

→ If they choose to upgrade, they will receive SKY tokens at a fixed rate of 1 MKR to 24,000 SKY.

→ Upgrading early helps avoid the Delayed Upgrade Penalty. Starting September 18, a 1% penalty applies to all MKR to SKY upgrades. This penalty increases by 1% every three months, up to a maximum of 100% over 25 years. This mechanism is designed to encourage timely participation in the upgrade.

→ MKR tokens no longer carry governance rights, as full governance authority has now been transferred to SKY. This change is intended to eliminate overlap between tokens and streamline participation in governance.

→ MKR holders can upgrade using any of the following platforms:

- @SkyEcosystem (Link provided after this post)

- @summerfinance

- @defisaver

- @CoWSwap

This is a gradual transition shaped by open governance, with community input through public discussions and on-chain voting.

Ultimately, the upgrade aims to unify liquidity, simplify governance, and improve integration and infrastructure across the Sky ecosystem.