RuneChristensen,founderofSky(formerlyMakerDAO),hasproposedastrictlydeflationaryapproachtotheprotocol’sgovernancetokenasthecommunitypreparestovoteonwhethertorevertitsbrandornotonNov.11.

Christensenexplainedthattheproposedchangeswouldaffectthegovernancetokensupply,whetheritcontinuesasSKYorpivotsbacktoMKR.

Deflationarytokenomics

Ifapproved,theproposedtokenomicswouldeliminatetokenemissionsunderregularconditions,transformingthetokenstructuretobestrictlydeflationary.

Theburningmechanism,integraltoMaker’stokenomics,wouldpermanentlyreducethetotaltokensupplyovertime.Anexceptiontothisrulewouldexistonlyincasesofsignificantfinancialshortfall,potentiallyjeopardizingMaker’sstablecoins—SkyDollar(USDS)andDAI.

Undertheproposal,theecosystemwouldintroduce“StarTokenRewards,”includingSpark(SPK),whichtokenholderscouldearnthroughgovernanceparticipationandactivationofMaker’sSealEngine,addingnewincentivesforengagementwhileadheringtothedeflationarymodel.

Distinctscenariosahead

ThecommunityvotewillalsodecidewhethertoretaintheestablishedMakerbrandorfullyadopttheSkyidentity.IftheSkybrandwins,MakerDAOplanstomigratetheentireMKRecosystemintoSKY,rebrandingMKRtokensasWrapped24kSkyTokens(SKY24K).

ThistransitionaimstopreventconfusionaboutlegacyMKRtokensandavoidrequiringholderstomakeanychangestotheirexistingpositions.Theswitchwouldsimplifyintegration,enablingMKRholderstoaccessSealEnginefeaturesandgovernancewithoutcomplications.

IntheeventthattheMakerbrandprevails,Skywouldshiftintoanauxiliaryroleasa“Star,”promotingadoptioninawaycomplementarytoSpark,whichprimarilydrivescollateralandborrowingactivity.Underthisstructure,Sky’stokenwouldberenamedOLD_SKY,convertiblebacktoMKRatafixedrateof1:24000,or,foralimitedtime,exchanged1:1fortokensgoverningtheSkyStar.

Dual-Starsystem

Christensen’sproposalenvisionsSparkandSkyascomplementary“Stars”withinMaker’secosystem,targetingboththesupplyanddemandsides.

WhileSparkwouldfocusoncollateralallocationandborrowingincentives,SkywouldconcentrateonbuildingadoptionthroughUSDSutilization.SkywouldalsocontroltheSky.moneyplatformandoperatewithanAccessibilityRewardsystem,providingincentivesforprojectsthatincreaseUSDSadoption.

Initsinitialphases,SkywillhaveexclusiveaccesstotheAccessibilityRewardsystem,whileSparkwillholdexclusiverightstoMaker’sAllocationSystem.ThistemporarydistinctionaimstostreamlineeachStar’sfocusastheecosystemgrows.

ThefinalvoteonthisproposalwilltakeplacefromNov.11toNov.14,withadditionaldetailstobereleasedinthecomingdays.MakerDAOispositionedtostrengthenitsfoundationalstructures,eitherwitharenewedMakerbrandorastreamlinedSkytransition,fosteringsustainablegrowththroughexpandedUSDSandamoreengaged,incentivizedcommunity.

cryptoslate.com