The decentralized finance (DeFi) giant MakerDAO unexpectedly announced a rebrand to Sky Protocol on August 27, and in mid-September, it launched upgraded versions of the Dai stablecoin and MKR governance token, called USDS and SKY, along with a series of collaborations and issuance activities to coincide with the brand refresh.
Further Reading: After MakerDAO Rebrands to Sky》SparkLend to Issue Token! How to Claim the Airdrop?
After two months of brand repositioning, Sky Protocol founder Rune Christensen posted a Twitter thread last (21st) night, announcing the milestones achieved by Sky Protocol in these two months and the future development of Sky Protocol:
USDS Supply Surpasses 1 Billion in Two Weeks
First, Christensen stated that USDS surpassed 1 billion in total supply 8 weeks after launch, which is a significant achievement:
In just two weeks, the total supply of USDS has surpassed 1 billion, which is a massive accomplishment. A key metric for the project is the demand and growth of USDS, which is a core indicator of the project's success.
Notably, much of the demand for USDS is coming from new users, while Dai's supply remains at 4.7 billion. Since the launch of USDS, the total inflow to the USDS and Dai systems has increased by around 700 million, further validating the core thesis that the simplified USDS brand, coupled with native token incentives, is attracting a whole new user base that was previously hard to reach.
Additionally, Christensen listed other important achievements of Sky:
- USDS has been integrated into top DeFi protocols like Aave, Ethena, and Morpho, and will continue to expand to more platforms.
- Sky.money, as a user-friendly, consumer-centric DeFi frontend, attracted 400,000 visits in its first month of launch.
- The Spark platform continues to grow and has launched innovative initiatives like the Tokenization Grand Prix, attracting applications from large institutions like BlackRock.
Community Favors Maker Brand
Despite Sky Protocol's impressive accomplishments, Christensen acknowledged that some community members feel unfamiliar with the rebranded protocol:
Some community members are unclear about the actual utility of the SKY token, beyond the 1 MKR being revalued to 24,000 SKY, and have questions about the token's issuance plans. While the SKY token roadmap includes interesting features to incentivize governance participation, such as Seal Rewards and Activation Rewards, the introduction of these alongside a host of other new features has made it challenging for people to fully grasp.
The dual use of Sky as the name for the protocol, frontend, and token has indeed caused user confusion.
Furthermore, Christensen acknowledged that the DeFi community has a stronger affinity for the Maker brand:
At the same time, we have also gained a clearer understanding that the DeFi community has a deep affinity for the Maker brand. Many people trust the stability, security, and scale that the Maker brand represents, and are more inclined to continue holding MKR rather than upgrading to the SKY token.
Three Options for Sky Protocol
To address the community's feedback, Christensen stated that he will be proposing a series of proposals, and if accepted by the community, they can not only strengthen the momentum of USDS but also address the community's concerns.
Christensen believes that the first consideration is to create distinct positioning for Maker and Sky:
Here is a simplified outline of what this proposal, if approved, would mean:
Maker = The decentralized protocol that powers the USDS, Dai, and StarDAOs ecosystem. The sole governance token for Maker is MKR. The Maker brand can be updated to adapt to the new era, or maintain its classic look, based on community needs.
Sky = The premier platform focused on serving the end-user needs of DeFi, helping users earn rewards through savings - powered by the unique features and products of Maker. In contrast to the Spark platform, which is focused on the backend collateral management and professional users, Sky is more oriented towards the frontend and USDS demand side, ensuring Maker has incubated two complementary frontend platforms.
Under this proposal, USDS will not change and will continue to be supported by Maker and MKR governance.
Furthermore, Christensen continued to say that community feedback will be incorporated into the voting options, and the current options are as follows:
- Continue with Sky as the Core Brand: Accept the momentum we've built around the Sky brand and continue to leverage it as the core of our ecosystem, further capitalizing on its recent success and growing recognition.
- Refocus on the Original Maker Brand: Reintroduce the Maker brand as our core focus, reestablishing MKR as the sole governance token for the DAO. This option respects the original vision of Maker, which has earned widespread trust and recognition in the DeFi community.
- Refocus on the Maker Brand with an Updated Brand Identity: Bring Maker back to the forefront, while making minor adjustments to keep it aligned with USDS and StarDAOs, while maintaining its classic look.
Christensen further stated that a community call will be held on October 25th, and after the call, the feedback will be compiled into a proposal that will be put to a vote starting October 28th (to decide whether to proceed with further brand adjustments). If approved, a multi-choice vote will be held on November 4th.
Additionally, Christensen mentioned that once the core brand direction is determined, consideration will be given to whether adjustments are needed to the token economics, the SKY brand, and the SKY token (if the vote to refocus on the Maker brand is passed).
