WEB3
by Soumen Datta
October 22, 2024
The Sky protocol introduced new tokens, including USDS and SKY, but many users expressed a preference for the original MKR token.
Rune Christensen, co-founder of Sky (formerly Maker), proposed returning the decentralized finance platform to its original Maker brand. The decision comes after confusion and negative feedback from the community following the platform's rebrand in August.
On October 21, Christensen shared his thoughts on the platform’s governance forum, stating that while the launch of the USDS decentralized stablecoin and the introduction of the Sky protocol were successful, community feedback indicated a strong preference for the Maker brand. He noted the trust and loyalty that Maker had built over time, stating:
"There was a lot of affinity for the brand and what it stands for—stability, security, and DeFi scale."
In September 2024, MakerDAO, the decentralized organization behind the popular DAI stablecoin, transitioned into Sky.
The rebrand was part of Maker's "Endgame" upgrade, with the introduction of a new stablecoin, Sky Dollar (USDS), and a new governance token, SKY, which replaced the original MKR token. Existing DAI holders were given the option to upgrade to USDS, while MKR token holders could switch to SKY at a 1:24,000 ratio.
The changes were aimed at positioning the platform for future growth, but the new structure created confusion. Many community members struggled to understand the roles of the different tokens, and several expressed a preference for continuing to hold MKR rather than upgrading to SKY. This has led to calls for a reconsideration of the branding strategy.
In response to the confusion, Christensen outlined three potential paths for the platform:
Continue with Sky as the Core Brand: Maintain the Sky branding and continue developing the platform with its current structure.
Return to the Maker Brand: Reintroduce the Maker brand with its original identity and reinstate MKR as the sole governance token.
Recenter Maker with a Refresh: Align Maker with the USDS stablecoin, making small changes to update the brand while retaining its core identity.
Christensen explained that the next steps would involve gathering feedback from the community. A call has been scheduled for October 25, followed by a governance poll on November 4 to decide the platform's future.
The proposal to return to Maker gained support among community members, many of whom felt the rebrand to Sky diluted the platform's original vision. Christensen acknowledged this, saying:
“Using Sky as the name of the protocol, the token, and the front end definitely added some confusion.”
He noted that many users are committed to the MKR token and have been hesitant to adopt SKY.
Despite the issues surrounding the rebrand, the USDS stablecoin has seen significant success. Two weeks after its launch, USDS surpassed a total supply of 1 billion and has already been integrated into major decentralized finance protocols like Aave, Ethena, and Morpho.
However, concerns remain about the platform’s tokenomics and future governance structure. According to Christensen, after the community call and governance poll, the team will explore whether changes need to be made to the tokenomics and consider the future of both the Sky brand and the SKY token.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
Author
Soumen Datta
Soumen is an experienced writer in cryptocurrencies, DeFi, NFTs, and GameFi. He has been analyzing the space for the last several years and believes there is a lot of potential with blockchain technology, even though we are still at an early stage. In his spare time, Soumen enjoys playing his guitar and singing along. Soumen holds bags in BTC, ETH, BNB, MATIC, and ADA.
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