MakerDAO changes its name to Sky to launch new stablecoin USDS and new token SKY on September 18

MakerDAO, one of the largest decentralised finance (DeFi) protocols, is undergoing a significant transformation.

As of 27 August, the protocol has rebranded to Sky and plans to launch two new tokens—USDS (a stablecoin) and SKY (a governance token)—on 18 September.

This rebrand is part of the “Endgame Plan,” an ambitious proposal to overhaul MakerDAO’s governance and tokenomics.

The reason why MakerDAO changed its name to Sky

Rune Christensen, founder of MakerDAO, states that the rebrand to Sky represents a complete overhaul of the protocol.

The goal is to make the platform more user-friendly, addressing the complexity that had previously made Maker less accessible to users.

A new website and app will accompany the rebrand, simplifying the user experience.

Token Upgrades

Current users of MakerDAO will have the option to upgrade their existing DAI stablecoins and MKR governance tokens to the new USDS and SKY tokens.

For example, each MKR token will convert into 24,000 SKY tokens, while DAI will switch to USDS on a one-to-one basis.

Additionally, Sky will offer a savings rate with enhanced rewards during the first month to encourage usage.

related reading：Co-Founder of Maker Sells MKR Tokens Worth $4.5 Million: Understanding the Situation

How Sky’s New Governance Will Work

Sky's rebranding also introduces "Sky Stars," formerly known as subDAOs.

These Stars will be independent decentralised projects, each with its own governance, token, and business model.

They will operate within the MakerDAO ecosystem but maintain autonomy.

The first of these Sky Stars, Spark, will allow users to borrow USDS by supplying crypto as collateral.

How Sky’s New Tokenomics Will Work

Under the new governance model, Sky Stars will work independently but remain connected to the core protocol through a network of incentives.

A key change in the tokenomics involves burning liquidity pool tokens to increase their value, aligning the interests of the Stars with the main protocol.

Profits will also be used to support the ecosystem, including the annual minting of SKY tokens.