SKY is the governance token of the same Sky Protocol (formerly MakerDAO) whose USDS/Dai stablecoins were covered in detail in Category 4 (Stablecoins) — the company background (Rune Christensen, the “Endgame” plan, the August 2024 Sky rebrand) is covered there. This chapter focuses specifically on the characteristics of the SKY TOKEN itself, the successor to the earlier MKR governance token.
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September 18, 2024: MKR holders can optionally convert their tokens to SKY at a 1:24,000 ratio — the conversion is NOT mandatory; the old MKR token continues to exist and remains tradable.
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The dramatic supply expansion (a 24,000x multiplier) was a deliberate decision to enable broader community participation in governance — a lower per-unit price means more people can hold a meaningful token amount.