Sky Protocol: from rebranding to its blockchain
What is Sky Protocol?
Sky is a decentralized financial infrastructure managed by the community, providing users access to DeFi tools such as liquidity pools, tokens, and stablecoins.
At the core of the Sky ecosystem lies the decentralized Sky Protocol. Initially, Sky Protocol was launched in 2014 on the Ethereum blockchain, initially known as Maker.
The Maker protocol team was the first to release a decentralized stablecoin, called Dai (previously known as Sai), in December 2017. Unlike Tether (USDT) and USD Coin (USDC), its issuance and circulation are not controlled by any central authority.
Maker is also one of the oldest decentralized applications in the crypto market. Additionally, Maker became the first decentralized lending protocol, enabling users to freely lend and borrow cryptocurrencies without any verification or intermediaries.
SKY token
Following its rebranding in August 2024, the Sky Protocol team introduced a new token, designated by the ticker SKY. Essentially, SKY is an updated version of the Maker token (MKR), serving as the ecosystem's primary asset. The SKY token is also issued on the Ethereum blockchain, which is the only network supported by Sky Protocol.
The SKY token was chosen as the main asset of the Sky Ecosystem by a general vote within the DAO held in November 2024. During this vote, it was also established that the new token's economy would be deflationary, meaning the total supply of SKY would decrease over time due to a long-term supply reduction strategy.
Users can acquire SKY tokens by converting them from MKR through Sky Protocol. This migration is voluntary: users decide whether to convert their tokens to SKY or keep MKR.
As of May 2025, only about 15% of the total MKR supply had migrated to the new SKY token since its launch. This indicates that most holders still prefer MKR over the new token despite the voting results. However, the Sky Protocol team has proposed integrating a staking mechanism for SKY tokens to incentivize holders to switch to the new token.
The SKY token performs the same functions in the Sky ecosystem as MKR did previously:
- Utility: SKY can be used in the DeFi market like any other token, for example, for liquidity mining and lending;
- Governance: SKY holders can participate in voting and influence the development of the entire Sky Ecosystem;
- Rewards: users can stake SKY tokens to earn additional tokens as rewards;
- Issuance: SKY holders can use their tokens as collateral to issue the stablecoin USDS.
As of June 2025, the price of the SKY token is $0.069, with a market capitalization of $1.45 billion, ranking it 56th among cryptocurrencies overall. The total token supply is 27.4 billion, with 21.35 billion circulating on the market.
In December 2024, amid the general growth of the cryptocurrency market, the SKY token reached its all-time high (ATH) of $ 0.10. Since its listing on exchanges, the altcoin's price has remained almost unchanged, but it has grown virtually twofold after the February 2025 crash.
Sky Protocol's prospects
In March 2023, the current Sky Protocol team released a detailed roadmap titled "Endgame," comprising five main stages. The rebranding and release of updated tokens in the summer of 2024 became the first stage (Beta Launch) of this new roadmap.
In the future, the Sky Protocol team still needs to complete the remaining four stages:
- Launch of SubDAOs — six decentralized autonomous subdivisions funded by the issuance of updated tokens aimed at improving the governance efficiency of the Sky ecosystem;
- Launch of AI-based governance tools that will enhance the efficiency of "Atlas" (the main governance rulebook of the Sky Ecosystem);
- Launch of the Sagittarius Lockstake Engine (SLE) mechanism to incentivize community participation in ecosystem governance through a rewards system;
- Launch of its blockchain codenamed "NewChain," which will implement the entire current economy of the Sky Ecosystem. This will be the final stage of the current Sky Protocol roadmap.
