‘End of an era?’ Mixed views as Maker rebrands to Sky
- Maker has rebranded to Sky with a twin stablecoin providing and new SKY governance tokens.
- MKR has tanked double-digits after the rebrand; what’s subsequent?
Maker [MKR], based in 2014 and one of many pioneers of lending within the DeFi house working on the Ethereum [ETH] chain, has rebranded to ‘Sky’ to spice up utilization.
Its native MKR token has been the governance token, whereas its decentralized stablecoin Dai [DAI] enhances Maker’s ecosystem as a medium of alternate.
The 2 tokens have been broadly used for a couple of decade. Nonetheless, the rebrand comes with key upgrades, together with a brand new stablecoin (USDS) and governance token (SKY).
‘Present DAI and MKR tokens will stay unchanged and holders will be capable to alternate DAI tokens 1:1 for USDS, and one MKR token may be swapped for 28,000 SKY tokens. SKY and USDS will likely be obtainable to commerce on September 18th. What an attention-grabbing transfer on their half.’
Am ‘finish of an period’ for Maker?
Reacting to the rebranding, Uniswap [UNI] founder Hayden Adams termed the transfer as an ‘finish of an period.’ He said,
‘Finish of an period. MKR and DAI have been two of the very first tokens to get traction on Uniswap v1’
Nonetheless, different market commentators noticed the transfer because the ‘finish of an period’ and loss of life for Maker’s dominance. One commentator, Millie, mentioned the transfer was Maker’s ‘descension to irrelevance.’
‘By the point any of it performs out DAI may have misplaced its total moat and will likely be totally changed by rather more dependable alternate options (even issues like USDC are higher on this case). The tip of an period of dominance.’
For context, most competition has been linked to the brand new stablecoin USDS, designed with a freeze operate like centralized stablecoins USDC and USDT. In brief, USDS customers may be censored.
One other person claimed the rebranding was loss of life for DAI.
‘DAI is now migrating to USDS, a censorable stablecoin that goes towards its unique imaginative and prescient. RIP DAI, 2017-2024.’
Nonetheless, Rune Christensen, Maker co-founder, clarified that upgrading from DAI to USDS will likely be optionally available and that solely the latter has a freeze operate.
‘That is deceptive, as Dai will proceed to operate simply as earlier than, and might nonetheless be used. Upgrading to USDS is optionally available, and it is just USDS that may have a freeze operate. Dai is an immutable sensible contract and can’t be altered.’
For context, Maker proposed this twin stablecoin strategy in Could to make sure mass adoption and regulatory compliance. Nonetheless, the top objective was ultimately to retire DAI after the mass adoption of USDS and ‘PureDai’. A part of the Could replace learn,
‘Finally, after a number of years, it’s anticipated that Dai will likely be absolutely deprecated as all customers and integrations migrate to both NewStable (USDS) or PureDai. The timeline for when this occurs will rely on how rapidly the ecosystem adopts NewStable (USDS) and PureDai’
MKR drops double-digits
After the rebrand on Wednesday, MKR tanked 12%, from $2.1k to $1.9k on the time of writing. The drop might even have been triggered by Bitcoin [BTC] losses.
Nonetheless, it stays to be seen how MKR’s worth will react to the rebrand within the quick time period.