Decentralized finance platform Sky proposes a major upgrade to its governance token, replacing the existing Maker (MKR) with its own SKY token. This change aims to facilitate faster adoption by exchanges and enhance staking capabilities. The proposal, outlined on May 1st in the Sky DAO forum, suggests that SKY will transition into the primary governance token for the protocol around May 15th to 19th. The upgrade would also disable downgrading from SKY back to MKR. Sky co-founder Rune Christensen believes this move is a crucial step towards achieving a cost-free operation by the end of 2025, ensuring more income generated through the protocol benefits the SKY token. To incentivize the transition, penalties for delayed upgrades from MKR to SKY will be applied. A 1% delay penalty will increase progressively over time, affecting MKR holders’ rewards and potentially driving faster adoption of the new token. The upgrade also includes enabling SKY staking, with rewards for USDS stablecoin income starting two or three weeks after the upgrade. Furthermore, Sky will temporarily halt liquidations during the transition to prevent price manipulation risks. This step is vital to maintain a fair market while ensuring risk parameters are set for long-term objectives once liquidity returns to the SKY token.