{"id":128426,"date":"2025-05-02T03:27:42","date_gmt":"2025-05-02T03:27:42","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=128426"},"modified":"2025-05-02T03:27:42","modified_gmt":"2025-05-02T03:27:42","slug":"sky-pitches-ousting-maker-token-enabling-staking-to-complete-upgrade","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=128426","title":{"rendered":"Sky pitches ousting Maker token, enabling staking, to complete upgrade"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsDecentralized finance (DeFi) lending platform Sky has pitched a proposal to finalize its upgrade from Maker by replacing its governance token and enabling staking.<br \/>\nThe proposal, posted on May 1 to Sky\u2019s decentralized autonomous organization (DAO) forum, would see the Sky (SKY) token take over the Maker (MKR) token as the protocol\u2019s governance token.<br \/>\nIf the DAO accepts, the change would be slated to take place around May 15 to May 19 and downgrading from SKY to MKR would also be disabled.<br \/>\nSky co-founder Rune Christensen said in response to the proposal that it was a \u201chuge milestone,\u201d which he \u201cfully supports,\u201d and laments that allowing users to downgrade from SKY back to MKR has been a \u201ckey limiting factor preventing exchanges from adopting SKY.\u201d<br \/>\n\u201cWith this change, exchanges are likely to move faster in quickly adopting SKY without concerns about fracturing liquidity,\u201d he said.<br \/>\nSource: SkyPenalties on MKR holders who are slow in switching to SKY have also been proposed.\u00a0<br \/>\nAccording to the proposal, a 1% delayed upgrade penalty would apply to all MKR to SKY upgrades starting Sept. 18, increasing every three months. Users hit with a delayed upgrade penalty will also obtain fewer SKY tokens.<br \/>\nSky staking, temporary pause on liquidations<br \/>\nChristensen said the most important change would be to see SKY staking enabled as part of the changes to the protocol.<br \/>\nRewards for its decentralized stablecoin, USDS, which are based on the income the Sky Protocol generates, will be enabled two or three weeks after the upgrade of the governance contract, with a splitter rate of 50%, according to Christensen.<br \/>\nSource: Rune Christensen\u201cGetting past the full upgrade of MKR to SKY is one of the last pieces missing before Sky can transition to 0 fixed costs at the end of 2025, which will ensure an even greater portion of the income the protocol generates goes to the benefit of SKY buybacks, or SKY Staking Rewards,\u201d he said.<br \/>\nSKY liquidations will also be temporarily disabled while the one-way MKR to SKY transition is still in its early stages.<br \/>\nRelated: Sky doubles down on token overhaul: Making MKR unusable, launching subDAOs<br \/>\n\u201cThis is necessary to prevent risk from price manipulation to the SKY and MKR price while the transition is happening,\u201d Christensen said.<br \/>\n\u201cWhen SKY market liquidity is restored, Sky Governance will lift the liquidation freeze and move risk parameters to long-term targets,\u201d he added.<br \/>\nMaker rebranded to Sky in August last year but after confusion and negative feedback, Christensen considered going back to the original Maker name just months later.<br \/>\nHowever, a November poll saw 79% of tokenholders vote to keep the Sky brand as the back end protocol brand with no further changes.<br \/>\nMagazine: SEC\u2019s U-turn on crypto leaves key questions unanswered<a href=\"https:\/\/cointelegraph.com\/news\/sky-pitches-ousting-maker-token-completing-upgrade?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsDecentralized finance (DeFi) lending platform Sky has pitched a proposal to finalize its upgrade from Maker by replacing its governance token and enabling staking. The proposal, posted on&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128426"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=128426"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128426\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=128426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=128426"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=128426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}