Rune Christensen, founder of Sky (previously MakerDAO), has proposed a strictly deflationary approach to the governance token SKY amid preparation for the community vote on brand revert.
Proposed Changes to the SKY Token Structure
As the community prepares for the vote on switching the name from MakerDAO to Sky, Rune Christensen has proposed changes to the SKY token, the governance token for Maker. If approved, the proposed voting system (Ampleforth) would eliminate token emissions under regular conditions, paving the way for a strictly deflationary vote structure.
Deflationary Tokenomics of the MKR Ecosystem
While the inevitable changes to the governance token structure will occur under normal conditions, a single exception exists in the case of significant financial shortfalls that could undermine Maker’s stablecoin – Sky Dollars (USDS) and DAIs (Multi-Collateral DAI).
Regarding the deflating token structure, the new ecosystem will introduce the Star Token Reward system, which will give holders Spark (SPK) tokens for participating in voting contexts and the use of the Maker Seal Engine resulting in new incentives, despite adhering to the overall deflative model.
Named “Star Tokens,” earnings will bring unexpected offerings, such as: StarWear for real-time audits, StarView for full MKR visibility, and Multi-Token Access for boosting investment strategies.
Possible Scenarios
This week, the community poll determines the fate of Sky (previously MakerDAO). The poll results will decide whether to retain the established Maker brand or fully adopt the Sky identity. If the Sky brand wins (64%), MakerDAO will need to migrate its entire MKR ecosystem into SKY, rebranding MKR tokens as Wrapped 24k Sky Tokens (SKY24K).
A Counter-Proposal for the Maker-as-Brand Option
The following accounts for multiple possible voting events and ensuing outcomes.
MakerDAO proposes SKY to become a “Star” token alongside MKR tokens, as a separate value with more than 24,000 MKR tokens in circulation. In that case, MKR tokens can be exchanged 1:1 for candies governing the Sky Star.
Sky will adopt as the main Moon token, while Spark will remain the primary token in the MKR token ecosystem. Sky plans to focus on adoption through Sky Dollar (USDS) utilization, controlling the Sky.Money platform and utilizing the Accessibility Reward system. This should incentivize projects that drive the use of Sky Dollars (USDS).
In its initial stages, Sky will have exclusive access to the Accessibility Reward protocol. Meanwhile, Spark will be the exclusive copyright holder of Maker’s Allocation System. This brief dual-token system will fix the focus of each star during the ecosystem’s growth.
Rebranding Potential
After voting data has been analyzed and final vote figures have been recorded, MakerDAO strongly feels Maker’s new USDS tokens will leave the token ecology and its followers incentivized to keep their positions and trigger growth exponentially for the business and its future goals.