MakerDAO Rebrands to Sky

The MakerDAO “Endgame” is coming to life with its transition to Sky.

What’s the Scoop?

• Awaited Upgrade: MakerDAO had been teasing a major protocol overhaul for months, and today, it presented Sky, the culmination of more than two years of meticulous work by the ecosystem.
• New Tokens: The launch of Sky introduces two “new” tokens. Alongside MKR, the rejuvenated protocol will be governed by the SKY token, which is convertible with MKR at a 24,000:1 ratio. Additionally, Sky introduces USDS to replace yield-bearing sDAI, which remains redeemable for DAI.
• Inflationary Incentives: SKY is set to inflate by 600M tokens per year – representing a 2.5% increase to the current circulating supply. These emissions will be utilized to reward USDS stakers on the Sky protocol, and users who sign up with sky.money before September 18 can double their SKY rewards during their first month of staking. 
• Spark Airdrop: Maker’s Spark lending market subDAO (now termed a “Star”) will airdrop 66.66M SPK to participants once the token goes live after September 18. Annual subsidies of 1B SPK will be distributed over the following four years to incentivize USDS and Maker token activation programs.
• Skylink: Ethereum and its major L2s will receive “Skylink” deployments following the deployment of sealed activation, providing native access to Sky ecosystem assets.

Bankless Take:

Although immense planning appears to have gone into the rollout of Sky, MKR price barely budged on the announcement, gaining a negligible 4.5% and failing to retrace its weekend slide. Core alterations to Maker revolve around the rebrand and inflationary token incentives, and while such changes will likely catalyze renewed short-term excitement for the protocol, it remains to be seen whether they can result in sustained benefits.