Rune Christensen, founding father of Sky (previously MakerDAO), has proposed a strictly deflationary method to the protocol’s governance token because the group prepares to vote on whether or not to revert its model or not on Nov. 11.
Christensen defined that the proposed modifications would have an effect on the governance token provide, whether or not it continues as SKY or pivots again to MKR.
Deflationary tokenomics
If permitted, the proposed tokenomics would eradicate token emissions beneath common situations, reworking the token construction to be strictly deflationary.
The burning mechanism, integral to Maker’s tokenomics, would completely cut back the overall token provide over time. An exception to this rule would exist solely in circumstances of serious monetary shortfall, probably jeopardizing Maker’s stablecoins — Sky Greenback (USDS) and DAI.
Beneath the proposal, the ecosystem would introduce “Star Token Rewards,” together with Spark (SPK), which token holders may earn by means of governance participation and activation of Maker’s Seal Engine, including new incentives for engagement whereas adhering to the deflationary mannequin.
Distinct eventualities forward
The group vote may also determine whether or not to retain the established Maker model or totally undertake the Sky identification. If the Sky model wins, MakerDAO plans emigrate your entire MKR ecosystem into SKY, rebranding MKR tokens as Wrapped 24k Sky Tokens (SKY24K).
This transition goals to stop confusion about legacy MKR tokens and keep away from requiring holders to make any modifications to their current positions. The swap would simplify integration, enabling MKR holders to entry Seal Engine options and governance with out issues.
Within the occasion that the Maker model prevails, Sky would shift into an auxiliary position as a “Star,” selling adoption in a manner complementary to Spark, which primarily drives collateral and borrowing exercise. Beneath this construction, Sky’s token could be renamed OLD_SKY, convertible again to MKR at a hard and fast fee of 1:24000, or, for a restricted time, exchanged 1:1 for tokens governing the Sky Star.
Twin-Star system
Christensen’s proposal envisions Spark and Sky as complementary “Stars” inside Maker’s ecosystem, focusing on each the provision and demand sides.
Whereas Spark would give attention to collateral allocation and borrowing incentives, Sky would focus on constructing adoption by means of USDS utilization. Sky would additionally management the Sky.cash platform and function with an Accessibility Reward system, offering incentives for tasks that improve USDS adoption.
In its preliminary phases, Sky can have unique entry to the Accessibility Reward system, whereas Spark will maintain unique rights to Maker’s Allocation System. This non permanent distinction goals to streamline every Star’s focus because the ecosystem grows.
The ultimate vote on this proposal will happen from Nov. 11 to Nov. 14, with further particulars to be launched within the coming days. MakerDAO is positioned to strengthen its foundational constructions, both with a renewed Maker model or a streamlined Sky transition, fostering sustainable development by means of expanded USDS and a extra engaged, incentivized group.
