You’ve probably heard of MakerDAO, the system behind MKR and the stablecoin DAI. Now, meet what’s next. Sky is the rebranded ecosystem behind MakerDAO, one of the most established projects in decentralized finance. Launched in 2024, Sky represents the evolution of Maker’s stablecoin and governance system, with a stronger focus on accessibility, usability, and end-user experience.
Sky builds on MakerDAO’s long-standing role in DeFi by introducing a refreshed ecosystem centered around governance and decentralized control of digital assets. So, let’s dive in and see what’s new!
What Is Sky? The MakerDAO Rebrand Explained
Sky is the new identity of MakerDAO, the decentralized finance project best known for creating DAI, now evolved into the USDS stablecoin. The rebrand reflects a broader strategic shift toward improving governance participation, streamlining business processes, and enhancing the overall user experience across the ecosystem.
The Sky ecosystem operates on the Ethereum blockchain and focuses on two core assets: USDS, a decentralized stablecoin pegged to the United States dollar, and SKY, the governance token that replaced MKR. USDS is used for savings, payments, and financial transactions, while SKY enables voting, decision-making, and long-term protocol governance.
This evolution was driven by the need for better scalability, clearer incentives, and improved accessibility for both new and existing users. By lowering governance barriers and modernizing its design, Sky aims to serve as a more intuitive decentralized application while maintaining the risk management, transparency, and stability that made MakerDAO a foundational DeFi project.
Sky vs. Skycoin: Clearing Up the Confusion
Despite the similar name, Sky (SKY) and Skycoin (SKY) are entirely different cryptocurrency projects. Sky is the rebranded MakerDAO ecosystem focused on decentralized finance, stablecoins, and governance on Ethereum. Skycoin, on the other hand, is a separate blockchain project with its own computing platform, token economics, and development team.
They differ in use case, market value, technology, and community. Sky’s primary function is enabling decentralized savings, loans, and governance through USDS and SKY, while Skycoin targets network architecture and alternative blockchain infrastructure. Their prices, market capitalization, and trading volume are also unrelated.
Understanding this distinction is important for investors and end users to avoid confusion when researching exchanges, market trends, or investment opportunities.
How Sky Works: Key Features
Sky operates as a decentralized finance service with no central authority controlling user funds. One of its core features is USDS staking, where users deposit USDS into the protocol to earn yield through mechanisms such as the Sky Savings Rate and Sky Token Rewards. This allows users to generate interest on a dollar-pegged digital currency while retaining full control of their assets.
Governance is handled through the SKY token. Token holders participate in voting on protocol upgrades, fee adjustments, collateral policies, and risk management decisions. This voting process ensures transparency and community-led decision-making across the ecosystem.
Sky also introduces a modular structure known as Sky Stars, independent projects that operate within the broader ecosystem while maintaining autonomy. This design supports innovation, scalability, and faster development, all while preserving alignment with Sky’s core financial services.
How to Upgrade from MKR to SKY
As part of the MakerDAO rebrand, MKR has been replaced by SKY as the sole governance token of the Sky Protocol. While MKR may continue to trade on secondary markets, only SKY grants access to governance, staking, and participation in the Sky ecosystem.
The upgrade process is handled directly through Sky’s official website, ensuring a non-custodial and user-controlled experience. Users simply connect their Ethereum wallet, initiate the upgrade, and convert MKR to SKY at the fixed ratio of 1 MKR = 24,000 SKY. Throughout the process, users retain full control of their assets.
Upgrading is strongly encouraged for anyone who wants to continue voting, delegating, or interacting with Sky’s governance and reward mechanisms. Holding SKY unlocks features such as protocol voting, participation in decision-making, and access to staking-related functionality tied to the Sky ecosystem.
It’s also important to note that the protocol introduces a time-based penalty for delayed upgrades. Starting September 18, 2025, the amount of SKY received per MKR will gradually decrease, beginning with a 1% reduction and increasing over time. Upgrading before this date ensures users receive the full conversion value with no penalty.
In short, while MKR remains a recognizable asset, SKY is the token that will power the Sky ecosystem going forward, and upgrading is the recommended path for anyone looking to stay aligned with the protocol’s future development.
Sky Token (SKY) Current Value & Market Performance
The SKY token plays a central role in governance and protocol incentives. Following the rebranding, MKR was converted into SKY at a 1:24,000 ratio, significantly lowering the unit price and improving accessibility for individual participants.
At the time of writing, its market capitalization places it in the top 50 cryptocurrencies, among well-established DeFi governance tokens. However, like all cryptocurrencies, SKY experiences price volatility influenced by broader market conditions and DeFi adoption trends.
Bottom Line
Sky is the next chapter of MakerDAO, reimagined to deliver a more accessible and scalable decentralized finance ecosystem. By combining USDS for savings and transactions with SKY for governance and decision-making, Sky aims to empower users with greater control, transparency, and financial autonomy.