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After rebranding to Sky, MakerDAO may change its name if the community agrees.
Key Notes
MakerDAO might change its identity again months after rebranding to Sky.This decision rests on the feedback from the community this week.If the community chooses to recenter its brand to the original, a tokenomics overhaul might follow.MakerDAO is still deciding if its newly proposed identity, “Sky,” is the right move. As a result, the stablecoin-focused Decentralized Finance (DeFi) protocol may consider further brand changes. However, this will come after assessing feedback from its community on the initial rebrand. Noteworthy, this is barely four months after it completed the initial rebranding move.
MakerDAO Community Express Concerns about Rebranding
The September rebrand offered holders of DAI the option of upgrading their token into the new stablecoin Sky Dollar (USDS). It is worth noting that the upgrade is pegged at a 1:1 ratio, while MakerDAO’s governance token MKR MKR $1 175 24h volatility: 3.2% Market cap: $1.02 B Vol. 24h: $94.17 M into the SKY token is at a 1:24,000 ratio. On the other hand, existing DAI DAI $1.00 24h volatility: 0.1% Market cap: $5.84 B Vol. 24h: $106.38 M and MKR tokens remained active with no changes.
However, Rune Christensen, the founder of Sky, noted that some community members had reservations about the changes. A significant percentage of these token holders expressed their concerns about the utility of the SKY token. Christensen acknowledged the drudgery in following the various new reward systems introduced in the SKY token roadmap alongside the protocol’s new features.
He further confirmed that some community members would rather hold their MKR than upgrade to SKY. Therefore, he believes it might be beneficial to recenter it while maintaining separate roles for Maker and Sky. Since token conversion is stated as an option, the attitude of community members is hardly surprising.
Notably, these holders can swap the new tokens back to either DAI or MKR at any time. USDS has surpassed a total supply of 1 billion in just two weeks and has been integrated into major DeFi protocols like Aave, Ethena, and Morpho.
Maker Community Members Decide
Sky has scheduled a community call for this Friday to discuss the options. Noteworthy, the options available for Sky community members to choose from are to continue building with Sky as the core brand, reintroduce Maker as the central identity in its original form, or recenter Maker as the central brand but make small changes for better alignment with USDS and subDAOs known as Stars.
Success of the USDS Launch and the opportunity to recenter the Maker brand
It’s been 8 weeks since Sky was introduced as the best protocol for saving and growing your crypto and about a month since the new brand and functionalities went live.
In that short time we’ve seen a lot…
— Rune (@RuneKek) October 21, 2024
“Following the community call, I will incorporate all feedback and propose implementing the idea as an Atlas Edit that can be voted on from October 28, and which, if approved, will trigger the multiple choice poll in the week starting November 4,” Christensen noted.
Should the community request a new rebrand, the founder says the protocol will consider new changes in tokenomics as its next steps.
Meanwhile, when MakerDAO launched the new SKY tokens, it mentioned the potential launch of a Smart Burn Engine designed to focus its liquidity on the SKY/USDS market. The Smart Burn Engine will use available liquidity to bolster the market pair. Additionally, any liquidity the protocol acquires from its surplus operations will be directed to this market to create stability and drive demand for the SKY/USDS pair.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
