Sky, the decentralized finance (DeFi) platform previously known as MakerDAO, is considering reverting to its original brand, Maker.
This follows the highly successful launch of its decentralized stablecoin, USDS. However, concerns are emerging within the community regarding potential confusion surrounding the platform’s tokens.
Rune Christensen, cofounder of Sky, disclosed in a recent post on X (formerly Twitter) that the platform is deliberating returning to the MakerDAO brand. It comes after the community raised concerns about confusion regarding the brand name and the utility of the SKY token.
Specifically, some users think Sky’s dual roles as both the protocol’s name and its governance token are confusing. Additionally, the re-denomination of MKR (Maker’s original governance token) to SKY has not been universally embraced.
“The point is not the name sky. You should believe in your own ideas and upgrade all MKR to SKY. The source of confusion lies in having Maker and Sky on the market at the same time,” one community member commented.
The community also voiced strong support for the original Maker brand, which is widely associated with stability and security. Many MKR holders have indicated their reluctance to switch to the new SKY token. They prefer to stick with the established Maker identity.
Read more: Top 11 DeFi Protocols To Keep an Eye on in 2024
In response, Christensen proposed a series of governance polls to help determine the future of the Maker and Sky brands. He also highlighted the need to address community feedback on tokenomics and branding. Against this backdrop, the community will choose between three main options:
Continue with Sky as the core brand. This option would maintain the momentum of the Sky brand, capitalizing on its recent successes.
Recenter the Maker brand with its original identity. This would return Maker to the forefront of the ecosystem and reinstate MKR as the sole governance token.
Recenter the Maker brand with a refreshed identity. This compromise would bring back the Maker brand but with a modernized design to align it with the platform’s new features.
To gather further feedback, the team scheduled a community call for October 25. Thereafter, there will be a series of governance polls starting on October 28. The polls will allow the community to vote on the future direction of the platform, including potential changes to tokenomics and the roles of the Sky brand and the SKY token.
Christensen emphasized the importance of ensuring fair treatment for all users, regardless of which direction the community chooses. This includes those who have received SKY token rewards. He also assured that the platform’s core functionality would remain unchanged, regardless of the vote’s outcome.
Sky Roadmap Amid USDS Stablecoin Success
Christensen’s post also outlined the upcoming roadmap for Sky, highlighting that the platform’s early successes are only the beginning. Moving forward, the team will focus on expanding USDS to Ethereum Layer-2s and Solana. It will also look to integrate the stablecoin into blue-chip DeFi protocols across various blockchains.
In the longer term, Sky aims to develop new products such as the Spark Liquidity Layer and AI-driven governance systems. These, according to Christensen, will streamline the platform’s operations and accelerate its expansion. The initiatives could make Sky a more user-friendly platform for those looking to participate in the DeFi ecosystem.
The roadmap comes as the decentralized stablecoin recorded notable successes, surpassing key milestones since the rebranding. USDS, which launched about eight weeks ago, reached a major milestone, exceeding a total supply of 1 billion tokens. This quick growth highlights strong demand for USDS, especially from new users who previously did not interact with the ecosystem.
The achievement validates the platform’s strategy of using native token rewards, which has helped draw in a new user base. Increased inflows across the broader DeFi ecosystem also accompanied the growth of USDS. According to Christensen, total inflows have increased by $700 million since USDS’s launch. This includes those from Maker’s original stablecoin Dai (DAI) and brings the total DAI supply to 4.7 billion.
USDS integration into prominent DeFi protocols, such as Aave, Ethena, and Morpho, also solidifies its position within the broader DeFi space. In addition, the Sky website has reportedly seen over 400,000 visits in its first month, serving as an accessible DeFi front end.
Read more: A Guide to the Best Stablecoins in 2024
Despite the positive outcomes, the community remains dissatisfied with certain actions. For example, during the Wintermute hack, up to $160 million in assets, including USDS (formerly DAI), were moved to Curve to prevent freezing. Many members expressed concerns over Christensen’s explanation that the freeze function in USDS was an optional upgrade. They believe this level of control undermines the platform’s decentralized nature.
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