- Sky (formerly Maker) urges holders of its old governance token MKR to convert to its new token SKY before financial penalties begin.
- A 1% conversion penalty will apply from September 22, increasing by 1% every three months thereafter.
- About 82% of all MKR tokens have already been converted to SKY, largely driven by the upcoming penalty.
- There remain about 174,000 MKR tokens worth roughly $323 million yet to convert, with many held by smaller investors.
- Sky is one of the largest DeFi protocols, with over $6 billion in deposits, and issues both DAI and USDS stablecoins.
Investors in Sky, previously known as Maker, must swap their old MKR governance tokens for new SKY tokens before a conversion penalty starts on September 22. The company announced the decision as part of a rebranding and system upgrade focused on attracting broader interest beyond the usual decentralized finance community.
As of Thursday, about 82% of MKR tokens have switched to SKY after conversion numbers surged following official notices and an upcoming penalty. Sky said holders who convert after September 22 will pay a 1% penalty, which will increase by 1% every three months. According to Sky‘s data, there are still about 174,000 MKR tokens not yet converted, with a value near $323 million.
“A key limiting factor preventing exchanges from adopting SKY,” founder Rune Christensen told DL News, noting that as of May, only 11% of tokens were converted and just 2,000 wallets held SKY compared to 101,000 for MKR. Since the penalty announcement and system changes, large investors have moved quickly, but many smaller holders still hold MKR.
The rebrand created a new governance token—SKY—which replaced MKR. A conversion rate of 1 MKR to 24,000 SKY was set, partly to address branding confusion and make token amounts more appealing to retail investors. Voting rights and protocol control have now shifted formally from MKR holders to those with SKY.
Sky remains a major DeFi platform, managing over $6 billion in user deposits. It issues two major stablecoins—DAI and USDS. Its total value locked has declined from previous highs reached in 2022. Conversion activity increased sharply after a May community vote to introduce penalties for late conversion.
Market data shows Bitcoin is down 0.2% over the past day, trading at about $116,973, and Ethereum is trading at $4,541, according to the latest available figures. For ongoing project updates, conversion details and more information are available on Sky’s official channels.
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