Sky to Maker rebrand is not going to work as whale voters squashed the plans.
Key Notes
- Most of the decision to retain the Sky brand came from only 4 whales.
- There is a growing clamor for a fresh start for SKY amid slow exchange listings.
After some discussion in the community, Sky will no longer rebrand to Maker as originally intended. This is because the governance proposal to pursue the rebranding of the Decentralized Finance (DeFi) lending and borrowing protocol did not receive any support from whale voters.
Whale Voters Pledge 63,874 MKR to Avoid Sky Rebrand
It is worth noting that the governance voting process was held earlier this week. Notably, a significant percentage of voters support the “Keep the Sky brand as the backend protocol brand” option. This option received 79% of the votes, and voters committed as much as 63,874 MKR
MKR
$1 484
24h volatility:
1.5%
Market cap:
$1.30 B
Vol. 24h:
$153.25 M
. Amazingly, only four whales contributed 98% of these tokens.
On the other hand, only 18 5% of voters favored the rebranding proposal and pledged only 14,864 MKR tokens. Similarly to the earlier group, only one whale pledged almost all the 14,864 MKR.
Consequently, the DeFi protocol took to X to announce that “Sky ecosystem governance has concluded an onchain vote to continue using the Sky brand as the primary backend protocol of the ecosystem”.
It also added that the decision “supports the ongoing transition from MKR to SKY and establishes Sky as the core brand.”
Four months after its initial rebranding, Coinspeaker reported that MakerDAO is still deciding if its newly proposed identity“Sky” is the right move. Based on the terms of the rebrand, DAI holders were offered the option of upgrading their token into the new stablecoin Sky Dollar (USDS), pegged at a 1:1 ratio. Meanwhile, MakerDAO’s governance token MKR is at a 1:24,000 ratio to the SKY token.
Existing DAI and MKR tokens remained active with no changes. However, the rebrand did not settle well with some Sky community members. They were concerned about the utility of SKY. Even Rune Christensen, the founder of the DeFi protocol, acknowledged the difficulty in following the various new reward systems introduced in the SKY token roadmap alongside the protocol’s new features.
Sky Has Unearthed Potential-Framework Ventures Co-founder
Sky scheduled a community call to discuss the available options. One such option is for Sky community members to continue building with Sky as the core brand. Another is the reintroduction of Maker as the central identity in its original form. Lastly, they had the option to recenter Maker as the central brand but make small changes for better alignment with USDS and subDAOs known as Stars.
The last option to recenter Maker was chosen but still needed the community’s approval. Hence, the recently concluded governance vote was necessary. Framework Ventures co-founder Vance Spencer thinks Sky still needs to get the chance to launch properly. He pointed out that the token has yet to see support from exchanges in the form of listings.
For emphasis, Spencer noted that CoinGecko did not transition MKR’s market cap to SKY. Furthermore, the rebrand coincided with the time when one large fund sold its MKR, and the token experienced a general market pullback.
“Going with SKY – I think there is a ton of value to be unearthed by following the Endgame roadmap, but there are things that should be altered and lessons learned,” Spencer noted.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
