Sky accelerates MKR to SKY migration and plans SubDAOs launch

Sky, the decentralised finance (DeFi) platform formerly known as Maker (CRYPTO:MKR), is pushing forward with plans to migrate from MKR to SKY tokens in 2025.

This follows a major rebrand in August 2023.

Rune Christensen, the co-founder of Sky, shared updates in a December 18 post that the transition will aim to eliminate confusion between MKR and SKY.

Christensen explained that MKR will no longer be usable and will become a legacy token, with each MKR representing 24,000 SKY.

“This does not put MKR tokenholders in a position where they can lose their funds, but new proposals will make migration a requirement to gain usability from the token,” Christensen said.

Further details about the migration and the conversion process are expected to be shared in 2025. The main objective is to ensure that exchanges, including CoinGecko, support only SKY, effectively making MKR obsolete.

In a governance vote held on November 11, 2023, Sky’s community voted to adopt SKY as the core token for the ecosystem. The vote also introduced deflationary tokenomics, which will include a supply reduction mechanism through token burning.

Sky is also preparing to launch additional subDAOs, called Stars, in 2025. Christensen highlighted that the new tokenomics model makes it easier to create these subDAOs.

“The ability to create Stars becomes a lot easier with the new SKY and Star tokenomics,” Christensen said.

Sky’s first subDAO, Spark, will be the first to use the new foundation model that controls workforce bonuses and decision-making.

Christensen confirmed that next year, Sky will onboard new founders and teams to create their own Stars.

Despite some negative feedback after the rebrand, 79% of tokenholders voted to keep the Sky name in a November poll.

At the time of reporting, the price of Maker (MKR) was $1,717.51.