Sky Speeds MKR to SKY Migration and Prepares Star Expansion
- Sky accelerates migration from MKR to SKY tokens, aiming for completion by 2025.
- New deflationary SKY tokenomics include rewards in USDS and upcoming Star tokens.
- SubDAOs called Stars to scale the Sky ecosystem, with Spark set to launch in 2025.
Sky, previously Maker, is now stepping up its transition from MKR to SKY tokens on its decentralized finance platform. On December 18, Rune Christensen, Sky’s co-founder, spoke about this plan in his post. This migration is expected to clear all the confusion between the tokens and make SKY as the native token by 2025.
Christensen also pointed out that MKR will become a wrapper for 24,000 SKY tokens. The token holders will have no option other than swapping to SKY for usage. Governance processes will also finalize the details of the migration in this regard, which will be updated in the coming year. A recent governance vote also redefined SKY and MKR tokenomics to be deflationary, prioritizing long-term supply reduction.
— Rune (@RuneKek) December 18, 2024
Sky end of year update
It’s been a big Q4 for Sky, capping off what is a pivotal year for the project. A brand shift and new front end paved the way for a host of changes to the system, including two upgraded tokens and the activation of native rewards. USDS grew to more…
Sky introduced several updates in 2024, including a rebrand, a new user interface, and the launch of USDS, its stablecoin. USDS now boasts over $1 billion in supply and is live on Ethereum, Solana, and Base blockchains. It offers users decentralized savings and payments through platforms like Sky.money, Spark.fi, and Aave.
Sky is also planning to expand its ecosystem through SubDAOs called Stars. These independent entities will operate autonomously to scale the ecosystem. Spark, the first Star, will launch in 2025 using a foundation model to manage resources and improve operations. This model allows it to act independently while contributing to the ecosystem’s growth.
Christensen confirmed that more Stars are under development. These new entities will focus on expanding to additional blockchains, exploring new verticals, and tapping into diverse user bases. The goal is to establish a network of Stars that support Sky’s growth while pursuing their own business objectives.
Sky Aave Force To Advance DeFi Adoption and InnovationSKY token holders will also benefit from new reward mechanisms. The Activation and Seal Engine features will enable holders to earn rewards in USDS and Star tokens like Spark. These rewards will go live alongside the Spark token launch.
Sky’s long-term strategy emphasizes creating multiple Stars to drive innovation and growth. The project aims to onboard new teams to develop Stars and leverage its multibillion-dollar collateral portfolio. Christensen called 2025 a “Cambrian explosion” of opportunities for Stars within the Sky ecosystem.
More information regarding the migration, token rewards, and new Stars is expected early next year. Sky is steadily increasing coverage in several blockchains and improving the availability of decentralized savings and payments.
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