In a significant development for the MakerDAO community, token holders are currently casting their votes to express their opinion on whether the protocol should "re-center" its brand and drop the new "Sky" moniker, which was adopted in August. This decision is crucial, as it will have far-reaching implications for the future of the MakerDAO ecosystem.
A Neutral Founder
In an interview with CoinDesk, Rune Christensen, the founder of MakerDAO, remained neutral on the branding question. Instead of taking a firm stance, he emphasized the importance of making a collective decision and refocusing on growth. "The most important thing is just to make a decision, and focus on what matters, which is the product," he said.
Changing the Name Was Not Cosmetic
Christensen clarified that changing the name to Sky was not merely cosmetic but rather part of Maker’s "Endgame" strategy, which introduced new products like the USDS stablecoin. He highlighted the success of this stablecoin, citing the portion of USDS held idle without earning rewards as a key indicator of its adoption.
Idle Behavior is a Good Indicator
Of the over $1 billion in circulation, a small but notable amount are not earning rewards – which shows that it’s being held by real humans and not bots. This idle behavior signals organic use, as real users treat USDS like cash, holding it temporarily without maximizing returns.
Christensen noted that bots would never leave money on the table, underscoring the importance of real-world usage in validating the success of a product.
Challenges Faced by Sky Rebranding
While the launch of USDS has exceeded expectations, Christensen acknowledged that the re-branding of Sky was met with challenges that impacted community perception and market confidence. He pointed to the significant drop in the (MKR) token’s value after the launch of Sky, citing CoinDesk Indices data showing it’s down nearly 40% in the last three months while the CD20 index is up 14%.
Dual-Token Structure: A Source of Confusion
The classic case of uncertainty, which is the worst thing you can have in an economy or financial system. It was a half migration. It wasn’t a full rebrand of the token to Sky, so most people still hold MKR.
The Road Ahead
The poll continues until November 7, after which a binding governance vote will take place. This decision will be crucial in shaping the future of the MakerDAO ecosystem and will have significant implications for its community and users.
What’s at Stake?
- The fate of the Sky brand: Will it be retained or dropped?
- Community perception and market confidence
- The success of new products like USDS stablecoin
- The impact on the (MKR) token’s value
Stay tuned as we continue to follow this development and bring you updates on the outcome of the poll and its implications for the MakerDAO community.
Timeline:
- November 7: Poll closes
- November 8: Binding governance vote takes place
- Future developments: To be determined based on the outcome of the vote
