What is Sky (SKY) / MakerDAO Rebrand?
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🟢 The simple version
Plain English — no jargon. Start here.
Sky (SKY) is the new governance token of the protocol formerly known as MakerDAO — as part of founder Rune Christensen's "Endgame" restructuring plan, MKR (Maker) converted to SKY at a 1:24,000 ratio, DAI was rebranded to USDS, and the protocol was renamed Sky to signal a new era of decentralised stablecoins with AI-assisted governance.
What was MakerDAO?
MakerDAO was Ethereum's original DeFi protocol — launched in 2017, it created DAI, the first major decentralised stablecoin, backed by overcollateralised crypto assets. DAI maintained its $1 peg through a system of Collateralised Debt Positions (CDPs, later renamed Vaults): you deposit ETH or other assets worth more than the DAI you borrow, and if your collateral falls below the liquidation threshold, it gets sold to repay the debt. MKR was the governance token — MKR holders voted on collateral types, stability fees, and protocol parameters.
MakerDAO grew to become one of DeFi's most important protocols — DAI was the backbone of countless DeFi protocols as a trusted decentralised stablecoin. At peak, MKR was one of the most valuable DeFi governance tokens, reflecting the protocol's dominance.
What is the Endgame plan?
In 2022-2023, Rune Christensen (MakerDAO's founder) proposed "Endgame" — a sweeping restructuring to make the protocol more resilient, scalable, and politically decentralised. Key changes: renaming MakerDAO to Sky Protocol, renaming MKR to SKY (with a 1:24,000 token split to make SKY more accessible), renaming DAI to USDS, creating "SubDAOs" (smaller autonomous DAOs each managing a product vertical), and using AI tools to help token holders participate in governance more efficiently.
Is SKY legal in India?
Yes. SKY qualifies as a Virtual Digital Asset (VDA) under Indian law. 30% tax on gains and 1% TDS applies. Always consult a tax professional.
🟡 A bit more detail
For when you want to go a little deeper.
MKR to SKY — what happened to existing holders
MKR holders could convert their MKR to SKY at a 1:24,000 ratio — one MKR becomes 24,000 SKY. This is purely a token split, not a value change (similar to a stock split): if MKR was worth $2,000, 24,000 SKY would also be worth $2,000 collectively. The split makes SKY more accessible for smaller participants who couldn't afford whole MKR tokens. MKR continues to exist — conversion is optional, not mandatory. Both MKR and SKY coexist for now, with governance transitioning toward SKY over time.
USDS (the rebranded DAI) maintains the same mechanism: overcollateralised vaults, $1 peg, same DeFi integrations. Existing DAI can be converted to USDS 1:1. Many protocols still use DAI — the rebrand is gradual rather than instant.
The Endgame restructuring is ambitious and has been controversial within the MakerDAO community. Multiple SubDAOs launching simultaneously, AI governance tools, new tokenomics — the complexity introduces execution risk. The protocol's track record is excellent (DAI survived multiple market crashes) but the restructuring introduces new unknowns. Live data: CoinGecko
Sky's revenue model
Sky Protocol generates revenue from stability fees (interest charged on DAI/USDS loans), liquidation penalties, and PSM (Peg Stability Module) fees. This revenue buys and burns MKR/SKY, reducing supply. At peak DeFi activity, MakerDAO was one of the most profitable protocols in all of crypto by revenue. The SKY burn mechanism means that protocol success directly accrues value to token holders through supply reduction.
🟣 The full technical picture
For the technically curious.
Key facts
- Token: SKY (rebranded from MKR)
- Protocol: Sky Protocol (rebranded from MakerDAO)
- Conversion: 1 MKR = 24,000 SKY (optional conversion)
- Stablecoin: USDS (rebranded from DAI) — overcollateralised, $1 peg
- Mechanism: Collateralised Debt Positions (Vaults) — borrow USDS against crypto collateral
- Revenue: Stability fees + liquidation penalties → burns SKY
- Endgame: Rune Christensen's restructuring — SubDAOs, AI governance, rebrand
- History: MakerDAO launched 2017 — one of DeFi's oldest and most battle-tested protocols
- vs Ethena: Sky/USDS = overcollateralised; Ethena/USDe = delta-neutral hedge
- vs USDC: USDS = decentralised, crypto-backed; USDC = centralised, bank-backed
- India tax: VDA — 30% gains tax + 1% TDS