Sky (SKY) is the native governance token of the Sky Protocol, introduced during MakerDAO's 2024 rebranding to enhance decentralized decision-making. As an upgraded version of MKR, SKY was distributed at a conversion rate of 1 MKR to 24,000 SKY, significantly expanding the token supply to foster broader community participation. SKY empowers holders to vote on protocol parameters, including stability fees, collateral management, and incentive structures, ensuring that governance remains decentralized and adaptive. Beyond voting, SKY can be used in various ecosystem modules—such as Activation and Seal Rewards—to earn additional assets, serve as collateral for borrowing USDS, and facilitate trading via liquidity pools. Developed by the MakerDAO team led by Rune Christensen, SKY plays a critical role in securing and evolving the decentralized financial infrastructure of the Sky Protocol.
