TechFlow news, May 1 — According to The Block, the Atlas Axis team, core governance design team of Sky, submitted a proposal on Wednesday that, if approved, would complete the protocol's upgrade from MKR to SKY. This change would make SKY the sole governance token of the protocol and enable staking functionality, providing USDS rewards to SKY holders.
Under the proposal, existing MKR holders can upgrade to SKY at a fixed ratio of 1 MKR:24,000 SKY. Like MKR, SKY will allow holders to vote on or delegate votes for governance proposals within the Sky ecosystem.
To encourage timely migration, a 1% penalty will be applied when converting MKR to SKY starting September 18, increasing by 1% every three months thereafter. Governance will transparently manage these penalties, aiming to reward early adopters and support long-term stability.
If approved, the proposal could be activated within weeks, with SKY inheriting the governance voting rights previously held by MKR, marking a significant turning point in the development of the Maker/Sky ecosystem.
