The decentralized financing loan platform (DEFI) Sky presented a proposal to finalize its Maker upgrading by replacing its governance token and making it possible to mark out.
The proposal, published on May 1 at the Decentralized Sky Autonomous Organization Forum (DAO), would see the Sky (Sky) token the Maker (MKR) to be the governance token of the protocol.
If the DAO accepts, the change should take place from May 15 to May 19 and the demotion of the sky to MKR would also be deactivated.
Sky co-founder, Rune Christensen, said in response to the proposal that it was an “important step”, which he “fully supports”, and deplores that using users to demo to MKR was a “key limitation factor preventing the exchanges to adopt the sky”.
“With this change, exchanges should evolve more quickly in the quickly adoption of the sky without concern about the liquidity of fracturing,” he said.
Penalties on MKR holders who are slow to spend Sky have also been offered.
According to the proposal, a delayed 1% upgrading penalty would apply to all MKR upgrades from the sky from September 18, increasing every three months. Users reach a delayed upgrading penalty will also get fewer sky token.
Sky Skaking, temporary break on liquidations
Christensen said that the most important change would be to see that Sky-Sky is allowed in the context of changes in the protocol.
The awards for its decentralized stable, USDS, based on the income generated by the Sky protocol, will be activated two or three weeks after upgrading the governance contract, with a separation rate of 50%, according to Christensen.
“Passing the full level of MKR to Sky is one of the last missing pieces before Sky can go to 0 fixed costs at the end of 2025, which will guarantee an even greater part of the income generated by the protocol.
Sky liquidations will also be temporarily deactivated while the MKR transition to one -way Sky is still in its infancy.
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“This is necessary to prevent the risks of price handling in heaven and at MKR prices during the transition,” said Christensen.
“When the liquidity of the sky market is restored, the governance of the sky will raise the liquidation frost and move the risk parameters towards long-term targets,” he added.
Maker renamed Sky in August last year, but after the confusion and negative comments, Christensen planned to return to the original name of the manufacturer a few months later.
However, a November survey saw 79% of chip holders voting to keep the Sky brand as the rear protocol brand without any other change.
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