DeFi protocol Sky considering a return to MakerDAO

The decentralized finance (DeFi) landscape is ever-evolving, and the recent developments surrounding the stablecoin-focused protocol Sky, formerly known as MakerDAO, highlight the complexities of brand identity and community engagement in the crypto space.

Sky’s founder, Rune Christensen, has, in a comprehensive statement on X, announced that the protocol is contemplating further brand changes after evaluating community feedback on its initial rebranding.

Concerns arising from MakerDAO rebranding to Sky

In September 2023, MakerDAO transitioned to Sky, allowing DAI holders to upgrade their tokens to the new Sky Dollar (USDS) at a 1:1 ratio, while MKR token holders were given the option to convert their tokens to SKY at a 1:24,000 ratio.

While existing DAI and MKR tokens remain active, allowing users to retain their investments, the rebranding has not been without its challenges.

Christensen acknowledged that several community members have expressed concerns regarding the utility of the new SKY token.

Moreover, the introduction of various new reward systems and features associated with the SKY token may have created confusion among users.

Christensen has pointed out that the use of “Sky” as the name for the protocol, the token, and the frontend may have contributed to this confusion.

Many community members are still committed to holding MKR tokens instead of transitioning to the new SKY token, indicating a strong affinity for the Maker brand that has existed for years.

Potential way forward for Sky

In light of this feedback, Christensen has outlined three potential paths for the future of the protocol.

The community can choose to continue building under the Sky brand, revert to the original Maker identity, or maintain Maker as the core brand while making minor adjustments for better alignment with USDS and the subDAOs known as “Stars.”

To facilitate this decision-making process, Sky plans to hold a community call this Friday, inviting input from stakeholders.

Following the community call, Christensen aims to incorporate the feedback into an Atlas Edit proposal.

This proposal will be presented for a vote starting October 28, and if approved, it will lead to a multiple-choice poll in the first week of November.

If the community decides to adopt a new brand identity, Sky will also explore changes in tokenomics as part of its next steps.

The swift growth of USDS, which surpassed a total supply of 1 billion just two weeks after its launch, demonstrates the potential for Sky to carve out a significant niche in the DeFi market.

The token has already been integrated into major DeFi protocols like Aave, Ethena, and Morpho, showcasing its increasing utility.

As Sky navigates these brand identity discussions, the outcome will have lasting implications not only for the project but also for the broader DeFi community, highlighting the importance of community feedback and adaptability in this dynamic industry.