MakerDAO Reconsiders Sky Brand Amid Community Concerns

MakerDAO, a decentralized blockchain protocol, is considering parting ways with Sky after its significant underperformance against CoinDesk 20 index. The community is actively debating whether to continue with Sky or return to its original brand identity.

Rune Christensen, MakerDAO founder, outlined three options for the community. The first option is to stick with Sky as the core brand and try to build on its recent momentum. The second is to return to Maker’s original brand and reinstate MKR as the governance token. The third is to refresh the Maker brand to better fit today’s ecosystem while keeping its trusted identity.

Many contributors have pointed out that the Sky token, which replaced MKR as the core governance token, has not lived up to expectations. Over the past two weeks, Sky has dropped 23%, while the CoinDesk 20 index has gained 10%. Year-on-year, MKR has fallen by 24%, according to CoinDesk data.

Another major point of criticism is the controversial “freeze function” introduced for regulatory compliance. Critics say it lacks clear benefits and poses potential long-term risks.

The rebrand effort has cost MakerDAO about $25 million so far, covering 13.79 million DAI and 9,535 MKR. Christensen confirmed that the platform will hold a community call to discuss feedback on the rebrand. A formal governance vote will take place on November 4 to decide the future of the brand.