Rune Christensen, the founder of Sky, formerly known as MakerDAO, has put forth a proposal for a strict deflationary approach to the governance token of the protocol. The community is set to vote on whether to stick with the new Sky brand or revert back to the original MKR on November 11.
If the proposal is accepted, it would mean that token emissions would be eliminated under normal circumstances, making the token structure entirely deflationary. This would involve a burning mechanism that would gradually reduce the total token supply over time, except in cases of significant financial difficulties that could impact Maker’s stablecoins, USDS and DAI.
As part of the proposed changes, the ecosystem would introduce “Star Token Rewards,” such as Spark (SPK), which token holders could earn through participating in governance and activating Maker’s Seal Engine. This would provide additional incentives for engagement while adhering to the deflationary model.
The upcoming community vote will also determine whether to keep the Maker brand or fully embrace the Sky identity. If Sky wins, the plan is to transition the entire MKR ecosystem into SKY, renaming MKR tokens as Wrapped 24k Sky Tokens (SKY24K). This move aims to prevent confusion and simplify integration for MKR holders.
On the other hand, if the Maker brand is chosen, Sky would take on a secondary role as a “Star,” focusing on promoting adoption alongside Spark, which drives collateral and borrowing activity. Sky tokens would be renamed OLD_SKY and could be converted back to MKR at a fixed rate or exchanged for tokens governing the Sky Star.
Christensen’s proposal envisions a dual-star system where Spark and Sky work together to target both supply and demand within Maker’s ecosystem. While Spark would concentrate on collateral allocation and borrowing incentives, Sky would focus on increasing USDS adoption and operating the Sky.money platform.
The final vote on this proposal is scheduled to take place from November 11 to November 14, with more details expected to be released soon. MakerDAO is poised to strengthen its foundational structures, whether through a renewed Maker brand or a streamlined transition to Sky, aiming for sustainable growth and a more engaged community.