$SKY What is SKY and why did MKR change to SKY
Sky is the new name for the MakerDAO system after a comprehensive rebranding and restructuring of the protocol. The original governance token MKR has been converted to SKY to become the official governance token in the new system. The approximate conversion price for each MKR to SKY has been set to reflect the structural update of the protocol.
What distinguishes SKY now
SKY has become the sole governance token in the Sky protocol, granting its holder the right to vote on all decisions related to the management of the system, such as collateral management, adjusting stability fees, and distributing rewards.
The protocol now supports a staking mechanism for SKY, where token holders can lock their tokens and participate in governance, with the opportunity to earn additional returns from the system.
The transition reflects a strategic protocol approach to update the network and make it more resilient and efficient, focusing on simplifying governance and expanding participation.
Important notes after the update
All MKR holders must undergo a conversion process to SKY, otherwise they may lose some governance rights and future rewards.
Some platforms may gradually stop supporting MKR, and governance operations will be fully conducted via SKY.
This transition reflects a strategic update that enhances the protocol's ability to scale and adapt to the demands of modern decentralized finance markets.
