Sky Considers Rebranding Back to MakerDAO After Community Feedback

Sentiment Status: Neutral

Sky’s USDS stablecoin, launched in September, has surpassed $1 billion in supply within two weeks, with inflows into USDS and DAI totaling $700 million.

Sky, formerly known as MakerDAO, has faced growing community concerns over its rebranding, leading to discussions about potentially returning to its original identity. Sky’s co-founder, Rune Christensen, announced that the DeFi protocol will soon propose governance votes that could redirect its branding strategy. The community feedback pointed to the confusion caused by the transition from MakerDAO to Sky, which occurred on August 27.

Sky’s rebrand from MakerDAO, one of the largest decentralized finance (DeFi) platforms known for its stability and security, has left some community members unsettled. Along with changing the protocol’s name, the governance token MKR was rebranded to SKY, and a new stablecoin called USDS was introduced. Despite these changes, MKR and DAI, the protocol’s original governance token and stablecoin, continue to operate alongside the new tokens.

Christensen admitted that the transition has caused unexpected confusion, particularly as both Sky and Maker brands coexist in the market. He pointed out that many users and holders of MKR showed reluctance to migrate to the new SKY token, and there remains a strong sense of loyalty to the Maker brand. The MakerDAO name is closely associated with trust, stability, and scalability within the DeFi space, which some fear may be diminished with the new branding.

To address the confusion, Sky plans to release a series of governance proposals that will allow the community to vote on the future direction of the brand. According to Christensen, there are three main options:

• Retaining Sky Branding: This proposal would continue the use of the Sky brand, while maintaining the ongoing migration to the SKY governance token and USDS stablecoin.

• Distinct Roles for Maker and Sky: This option suggests separating Maker and Sky's branding. Maker would focus on governing stablecoins like USDS and DAI, while Sky would serve as the protocol's front-end interface.

• Returning to Maker with a New Identity: The third proposal would recenter Maker's branding while giving it a refreshed identity that aligns with the latest developments in the ecosystem, such as the new stablecoins and subDAOs.

A community call to discuss these proposals is scheduled for October 25, with a preliminary proposal to be published on October 28. The community will then vote on the final decision starting November 4.

Despite the rebranding challenges, Sky has experienced rapid growth. Its newly launched USDS stablecoin, which debuted in September, has surpassed $1 billion in supply within just two weeks. Inflows into USDS and DAI have reached $700 million since the launch of USDS, and DAI remains the third-largest stablecoin with a $4.7 billion market cap.

Sky has also attracted 400,000 visits to its front-end platform in its first month. Looking ahead, the platform aims to deploy USDS across Ethereum Layer-2 networks and Solana to promote broader adoption.