Governance token Sky underperforms upon launch, MakerDAO proposes discussion on returning to the Maker brand.

Since MakerDAO rebranded as Sky, the SKY token has dropped by 23% in the past two weeks. The MakerDAO community is currently discussing whether to abandon the Sky brand, and an official governance vote will be held on November 4th to decide the future direction.

Maker Protocol Renamed Sky, Prepares to Launch USDS Stablecoin

Community Discussion Abandons Sky Brand

The SKY token was originally planned to replace Maker MKR as the core governance token. Despite the strong performance of the USDS stablecoin since its launch in August, with a supply reaching $1.2 billion and offering a 6.5% savings rate, SKY has so far failed to deliver the expected price increase.

The USDS stablecoin was launched in August to provide native token rewards and operate alongside the existing DAI synthetic stablecoin, which remains unchanged. The community members generally consider this launch a success.

However, the governance token SKY has performed poorly, with its market value nearly halved since its launch. Sky founder Rune Christensen admitted in a governance forum that he made some typical DeFi mistakes in the process of transforming Maker into Sky. He underestimated the importance of Coinbase and Binance in listing new coins, leading to the lack of market support for the SKY token as expected.

The protocol now has four independent tokens - Maker, Sky, DAI, and USDS - with overlapping functions, causing confusion among users.

Sky Brand Transformation Proposal

Many community members, including Vance Spencer, co-founder of crypto venture capital firm Framework Ventures, believe that the USDS stablecoin is a success story, but the failure of the Sky brand transformation makes a return to the Maker brand a wise move.

Rune Christensen mentioned in the governance forum that the community currently has three proposals to address these issues:

1. Continue using Sky as the core brand: Place Sky at the core of the ecosystem and develop recognition day by day.

2. Restore the Maker brand: Make MKR the sole governance token again to show respect for the DeFi community's trust and friendliness.

3. Reshape the Maker brand: Make Maker re-enter the market through updated brand identity, maintaining a classic look but making some minor modifications to align with USDS and StarDAO.

Rune Christensen will hold a community meeting on October 25th, with voting starting on October 28th. If approved, a governance proposal with multiple options will be launched in the week starting November 4th.

The Sky rebranding process has been time-consuming. Since 2022, Rune Christensen has believed that the name Maker is confusing, pointing out that some people may not even know that DAI is a stablecoin, as most stablecoin names include USD. Therefore, he has been dedicated to rebranding for the past two years and completed it this year, costing 13.79 million DAI and 9,535 MKR, totaling about $25 million.

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