Sky

Sky is the governance token of the Sky Protocol, the system that launched in 2024 as a rebrand and upgrade of the Maker Protocol. Maker had been one of the earliest decentralized finance projects, best known for the DAI stablecoin, and the Sky relaunch introduced a new stablecoin called USDS alongside the SKY governance token.

The protocol's core function is unchanged in spirit: it allows users to generate a dollar-pegged stablecoin against collateral, and it manages the parameters that keep that stablecoin near its peg. USDS serves as the savings and settlement asset, while SKY carries voting power over the system.

Governance and staking

SKY holders vote on protocol decisions such as collateral types, stability fees, and how reserves are deployed. The system also includes a staking mechanism where SKY can be locked to help secure the protocol and earn rewards. Because everything runs through smart contracts, changes are executed on chain after a governance vote rather than by a company acting unilaterally.

The protocol maintains a savings rate that pays holders of USDS a return funded by revenue the system earns from borrowers and from reserve assets. That rate is a governance parameter and moves over time.

Supply

SKY has a very large supply, listed at roughly 23.46 billion tokens with nearly all of it circulating. The high token count reflects the conversion ratio used when the older MKR governance token was exchanged for SKY during the rebrand, where each MKR could be converted into a large number of SKY. Because MKR and SKY coexisted through the transition, holders should confirm which token a given venue or contract refers to before interacting with it.