Sky Doubles Down on Token Overhaul: MKR to Become Legacy Token, Launch of SubDAOs in 2025

Sky Doubles Down on Token Overhaul: MKR to Become Legacy Token, Launch of SubDAOs in 2025

Sky, the decentralized finance (DeFi) lending platform formerly known as Maker, is pushing forward with a significant transformation of its tokenomics. In an end-of-year update shared on December 18, co-founder Rune Christensen revealed that the platform plans to expedite the transition from its MKR token to SKY in 2025, following a major rebrand in August. This migration aims to eliminate confusion between the MKR and SKY tokens and streamline the ecosystem’s structure.


MKR Token to Become a Legacy Wrapper for SKY

Christensen outlined that the core focus of the upcoming changes will be the full migration from MKR to SKY. This shift, he emphasized, will not result in MKR token holders losing their funds, but rather make the migration essential for maintaining the token’s usability.


“The goal is to ensure that CoinGecko and exchanges all support SKY only, and MKR becomes simply a legacy wrapper that represents 24,000 SKY per MKR,” Christensen explained. He further stated that more details on this migration would be provided in 2025, with new proposals making the transition a necessary step for token holders who want to retain access to the ecosystem’s benefits.


The decision to make SKY the central token for the Sky platform was solidified in a governance vote on November 11, where stakeholders also approved the adoption of deflationary tokenomics. This includes a long-term supply reduction mechanism and a burn strategy, which will further drive the value of SKY over time.


The Rise of SubDAOs: A New Strategy for Sky’s Ecosystem

As part of the ongoing transformation, Sky is also set to launch a new set of subDAOs, referred to as Stars, in 2025. Christensen revealed that these Stars will benefit from the deflationary changes to the SKY token and will be empowered with more autonomy to make decisions and manage resources.


The first subDAO, Spark, is on track to become the inaugural Star within the Sky ecosystem, operating under a foundation model that controls the workforce bonus pool and enables swift decision-making. Christensen emphasized that this new structure will make it easier to create additional Stars in the future.


“With the new SKY and Star tokenomics, and the shift to a foundation model, the ability to create Stars becomes a lot easier,” Christensen said. He added that Sky would begin onboarding new founders and teams to launch their own Stars, which would bring more innovation and variety to the Sky ecosystem.


Rebranding and the Future of Sky

While the transition to SKY and the launch of subDAOs represent major steps forward for the platform, Sky’s rebranding journey has not been without its challenges. In October, the platform considered reverting to its original Maker name after receiving negative feedback and confusion following the August rebrand. However, a governance poll held on November 4 showed overwhelming support for maintaining the Sky brand, with 79% of token holders voting to keep it as the back-end protocol name.


Christensen acknowledged the feedback, noting that while there had been some pushback, the decision to retain the Sky name would help solidify the platform’s new direction and strengthen its identity moving forward.


Looking Ahead: Sky's Ambitious Plans for 2025

As Sky prepares for the full implementation of these changes in 2025, it is clear that the platform is aiming for a complete overhaul of its tokenomics and ecosystem structure. The migration from MKR to SKY, the introduction of deflationary tokenomics, and the launch of subDAOs all signal a shift towards greater flexibility and scalability within the Sky ecosystem.


With the foundation for new subDAOs like Spark already in place and a robust roadmap for onboarding additional teams, Sky’s vision for 2025 is one of expansion, innovation, and a streamlined, user-focused experience. While the platform’s rebrand and token overhaul have drawn mixed reactions, Sky’s leadership is committed to pushing forward with its vision, making it clear that the best is yet to come for the evolving DeFi ecosystem.

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