Sky Submits Proposal for Complete Replacement of MKR…Governance and Staking Transition Begins

Minseung Kang

Summary

Sky has announced the formalization of a proposal to completely replace the governance token from MKR to SKY.
If the proposal passes, it will introduce staking rewards and designate SKY as the sole governance token, which is expected to bring significant changes for investors.
Sky stated that this transition is a key step in the 'Endgame' strategy and plans to transfer authority through an on-chain vote between the 15th and 19th.

Decentralized stablecoin protocol Sky (formerly MakerDAO) has formalized a proposal to completely replace the governance token from MKR to SKY.

According to The Block, a cryptocurrency-focused media outlet, on the 1st (local time), Sky's governance design team, Atlas Axis, has submitted a proposal to designate SKY as the sole governance token and introduce staking rewards for holders. If the proposal passes, the existing MKR will completely lose its governance function, and only SKY will exercise voting rights within the protocol.

Rune Christensen, co-founder of Sky, stated, "This proposal is a key step in Sky's transition," adding, "It is meaningful to establish a system that can redistribute profits through SKY buybacks or staking rewards ahead of the introduction of a zero fixed-cost structure targeted by the end of 2025."

Last year, Sky announced its 'Endgame' strategy, rebranding from the existing MakerDAO, and has been pursuing ▲ the launch of USDS (decentralized stablecoin) ▲ governance transition, among other initiatives. Currently, both MKR and DAI are in circulation, but users can convert at a rate of 24,000 SKY per 1 MKR.

The Sky team announced that if the proposal passes, they plan to transfer authority to the SKY contract through an on-chain vote between the 15th and 19th.

MKR

SKY