Sky (SKY) Review (8.4/10⭐)

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Sky (SKY) was designed to help you do more with your crypto. The governance token of Sky Protocol is multifaceted, allowing staking, trading, and reward collection. It works with the system’s other native coin, USDS, to offer a supercharged ecosystem. SKY replaces MKR, while USDS replaces DAI. A hassle-free upgrade process lets you swap your MKR for SKY and leverage the Sky ecosystem's DeFi opportunities. As of this writing, the exchange rate of MKR to SKY is 1:24,000.

 

A Bit About Sky

When MakerDAO rebranded to Sky Protocol, it introduced two new native tokens. USDS is the stablecoin, while SKY is the governance token. Sky (SKY) was created to ease access to governance. It also boosts the ecosystem's user experience and stability. Apart from voting, $SKY is eligible for staking rewards. Through delegation, borrowing, and staking, token holders can earn passive income in the form of rewards. Sky (SKY) isn't much different from MKR in terms of functionality; it's an evolution.

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As of May 2025, SKY is the sole governance token of Sky Protocol. The ecosystem offers the Sky.money web app, providing users with access to various features. MKR holders are encouraged to upgrade to SKY to improve network efficiency. Sky has simplified upgrades, allowing users to get the coins they need straight from the web app. Note that it's not possible to revert from SKY to MKR.

 

Utility of Sky?

Governance is SKY’s main use case. However, that doesn’t limit token holders to making project-related decisions. It comes with other utilities that keep the Sky ecosystem running. If you intend to invest in the coin, then learning what else you can do with it is imperative.

Community Governance
The decentralization of a cryptocurrency asset depends on its community. A project like Sky Protocol gives token holders voting power, which they use to drive key decisions. Using the Sky Governance Portal, you can cast your vote on proposals. Community members vote on a range of issues, such as collateral types, network changes, and fee adjustments. If you don’t want to exercise your voting rights, you can delegate them. Transferring your voting power to an account you own, or an approved delegate lets a third party play the governance role.

Passive Income
You can earn extra from your Sky (SKY) token through staking. By supplying coins to Sky Protocol’s Staking Engine, you can form one or more positions that let you access staking rewards. Onchain voting determines the reward rate, and the network doesn’t impose a minimum staking requirement. You can earn additional tokens by delegating yours or using the stake funds to borrow USDS.

Network Security
Another critical role that SKY plays is enhancing network security. Staking Sky (SKY) serves multiple purposes, such as increasing safety. When validators lock their tokens, they contribute to the system’s integrity, security, and efficiency. Since validators have a stake in how the system operates, they are motivated to eliminate fraudulent activities. The more users stake SKY, the better the ecosystem runs.

 

Advantages of Sky

+ A seamless transition from MKR ensures that users maintain their funds and leverage the utility of SKY
+ Sky (SKY) introduced deflationary tokenomics, which will help cut supply and potentially increase value
+ You can earn staking rewards by putting up your Sky (SKY) on the Sky Protocol
+ The token allows community members to vote on crucial decisions, facilitating decentralization
+ SKY is easily transferable and available to trade for cash, stablecoins or other virtual currencies
 

Disadvantages

- Old users have reservations about the project's direction, affecting the adoption of Sky (SKY)
- The freeze function introduced with USDS raises centralization fears among the community
- VPN restriction impacts accessibility, locking out users from some regions
- Delayed upgrading from MKR to $SKY can affect the system’s stability and functionality
- Sky (SKY) faces an adoption challenge, which can negatively impact its value
 

Costs

▪ Rated at 8.5/10

Information about how much you pay when trading with $Sky is not readily available. However, as with many tokens, expect to pay a percentage of your transaction and trading fees. This amount varies from one exchange to another. It can be as low as 0.1% or as high as 0.3%. Hence, be careful when comparing crypto exchanges to eliminate unnecessary charges. Network fees apply when upgrading from MKR to Sky (SKY) on Ethereum.

 

Reputation and Buzz

▪ Reputation rated at 7.5/10
▪ Buzz rated at 8.5/10

The overhaul of MakerDAO was an unexpected move that had the crypto scene abuzz. Some people didn’t see the need to rebrand the project, while others couldn’t wait to see what was in store. Regardless of the sentiments, the decision generated a lot of excitement. Sky set out to transform the DeFi landscape with fresh products. $SKY rides on the back of MKR, which has built a strong following. So, users don’t have to question the token's reputation.

Nevertheless, Sky Protocol has been relentless in marketing both its coins, bringing attention to the ecosystem. It might still be early to predict if the interest the token inspires will translate into adoption, but the project plans to make it a major player in the blockchain space.

 

FAQ

How do I upgrade my tokens from MKR to SKY?

You need the Sky.money web app to upgrade SKY from MKR. Go to the Upgrade feature and follow the prompts. Alternatively, you can use one of the frontends designated for token upgrades. Be sure to check out the MKR to SKY Upgrade Hub for more information.

Is there a deadline for upgrading to SKY?

Not technically. The project hasn’t set a specific date until when users can upgrade their tokens, but it has a Delayed Upgrade Penalty. This mechanism, effective as of September 18, 2025, slashes the SKY tokens received for MKR at a 1% rate. Every three months, the rate increases by 1% until it reaches 100%.

How many USDS coins are required to access Sky Token Rewards?

The Sky Protocol doesn’t set a minimum amount of USDS for users to accumulate reads. Therefore, you can supply your tokens to the Sky Token Rewards module and earn rewards, whose rate is calculated using several factors.

Where can I buy Sky (SKY)?

Several centralized exchanges support the buying and trading of SKY. Bitget is one. You can trade SKY/USDT, which is the exchange's most popular pair. KCEX and LXC are other options. Ensure you use a licensed and reputable crypto exchange.

 

History of Sky

September 18 2024 - MakerDAO rebrands to Sky Protocol, launching a variety of new products, including an upgrade of its stablecoin, USDS and its governance token SKY. However, MKR remains the ecosystem's governance token for a short period.

May 2025 - The Sky Ecosystem Governance community approves SKY as the token that will replace MKR, allowing coin holders to upgrade. Sky becomes the network’s only governance token.

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Screenshots from Sky

 

More sites where to buy/sell/trade Sky

Below you can see some other platforms, exchanges and/or brokers where you can buy, sell or trade this token. Click on the logo to read our review.