The Sky project, formerly known as Maker, is considering returning to its original name after just two months, due to mixed feedback and confusion within the DeFi community.
Rune Christensen has proposed three options: maintaining the Sky brand, returning to the Maker identity with the MKR token as the sole governance token, or modernizing the Maker brand while incorporating new developments like the USDS stablecoin.
A community meeting is scheduled for October 25th to gather opinions, followed by a governance vote on November 4th to decide the future of the brand and tokens. The rebranding to Sky and the launch of USDS have faced criticism, particularly due to the freezing feature.
A Controversial Maker-Sky Rebranding
In August, Maker underwent a transformation that saw it adopt the name Sky, along with launching a new protocol and the decentralized stablecoin USDS. However, this rebranding did not sit well with everyone. Many community members expressed their attachment to the old name Maker, which symbolized stability, security, and influence in the DeFi ecosystem.
Rune Christensen acknowledged that while Sky’s beginnings were successful, especially with the launch of the USDS stablecoin, the new name did not gain the same level of support as the old one. He explained that the DeFi community seemed strongly attached to the Maker brand, due to its well-established reputation in the field.
Return of MKR Governance?
In his proposal, Christensen mentioned three possible directions for the future. The first option is to maintain the Sky brand, capitalizing on the platform’s recent momentum. The second proposal aims to bring Maker back to its original identity, reinstating the MKR token as the sole governance token, surpassing SKY. Lastly, the third option considers reviving the Maker brand but with a modernized identity aligned with new developments like the USDS stablecoin.
Christensen also noted that the community’s sentiment around the MKR token was strong, with many holders being hesitant to migrate to the SKY token.
Next Steps: Community Consultation and Vote
The discussion about this possible reversal is just getting started. A community meeting is scheduled for October 25th to gather initial impressions and feedback on the different proposals. A governance vote will be held on November 4th to determine the path forward for the brand and tokens associated with the platform.
Turbulent Start for USDS and Sky
The rebranding of Maker to Sky primarily brought attention to the new stablecoin, USDS. However, this crypto has faced criticism within the community, especially due to its freezing feature, which is seen as contrary to decentralization principles.
Since the transition from MKR to SKY, the value of the MKR token has plummeted by 45%, even after the redenomination where 1 MKR was converted into 24,000 SKY tokens. This ongoing decline, with a further depreciation of 3.5% in a day, has brought MKR to its lowest level since September 2023, at $1,177.
The Dilemma of an Identity
The current situation highlights the challenge that Sky is facing: how to modernize and innovate while preserving the legacy of an iconic DeFi brand like Maker. The decision-making process now unfolding could determine whether the evolution towards Sky continues or if the platform reverts to its roots, giving the community a voice in shaping its future.
