Sky Drops Bombshell Proposal to Sunset MKR—Full Migration to SKY Tokens Imminent

DeFi’s latest power move: Sky just lobbed a grenade into governance forums with a hard-hitting proposal to kill off MKR tokens completely. The endgame? Forcing holders into the SKY ecosystem—whether they like it or not.

Here’s the kicker: The migration plan drops just as MakerDAO’s treasury reports show... questionable liquidity ratios. Coincidence? (Cue cynical laughter from crypto OGs.)

Pro tip for bagholders: Dust off those voting keys—this showdown’s going down on-chain. No corporate proxies, no ’community feedback’ theater. Just pure, uncut decentralized Darwinism.

MakerDAO overhauls operations with SKY-MKR pivot

MakerDAO rebranded to Sky in August as part of the protocol’s endgame roadmap, which sought to simplify the project alongside ushering a branding overhaul and introducing new tokens. According to Sky, just 14% of MKR’s supply has been migrated to SKY since the new token went live in September.

Sky also launched a new stablecoin, USDS, which has attracted more than $4 billion worth of migrations. However, more than $3 billion worth of liquidity remains in the form of its original stablecoin, DAI, according to CoinGecko. The stablecoins’ combined market cap ranks third-largest behind Circle’s USD Coin.

Endgame facilitates the protocol’s reorganization into subDAOs called Stars, each of which features a distinct governance mechanism and token. Spark, Sky’s first subDAO, which comprises a fork of the AAVE v3 money market protocol, currently boasts a total value locked (TVL) of $4.5 billion, according to DeFillama.

Although Sky ranks as the fourth-largest DeFi protocol with a $6.14 billion TVL, the protocol suffered the heaviest drawdown among the top 10 DeFi projects during April with a 21% dip.

Sky’s multi-chain expansion

Sky has sought to expand to new networks since undergoing its rebrand, with the project launching USDS on Solana in November. Users quickly migrated nearly $92 million worth of USDS onto Solana by December, with USDS’s market cap on Solana now sitting at $111.4 million, according to Blockanalitica.

Sky followed up by deploying on the Base layer 2 network in January. The move quickly proved successful, with $125 million worth of USDS moving onto Base by the end of March. However, USDS’s market cap on Base has since tumbled by more than half, with $56.7 million worth of USDS currently residing on the network.

Sky also launched on the Arbitrum layer 2 in March. However, adoption has been comparatively sluggish, with users bridging just $20.2 million worth of USDS onto Arbitrum to date.

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