TLDR:
- Following a lukewarm reception from the audience, MakerDAO might discard its Sky rebranding attempt.
- The rollout of the SKY token has seen a lackluster reception, with a mere 8% conversion rate from MKR tokens.
- With a solid supply of $1.2 billion and a 6.5% savings rate, the launch of the USDS stablecoin has been notably successful.
- There's a strong inclination among the MakerDAO community towards preserving the original Maker identity.
- A crucial governance vote has been planned for November 4th to decide the trajectory of the brand.
MakerDAO, renowned as a top-tier decentralized finance system, , is on the verge of retracting its fresh Sky rebranding strategy, having seen mixed signals from its audience and lackluster token performance.
Founder Rune Christensen from the organization disclosed that a critical governance ballot is set for November 4 in order to set a clear course for the brand.
The move to rebrand involved a considerable outlay, tallying up to $25 million when combining DAI and MKR tokens, yet it has run into several roadblocks along its journey.
The SKY token, proposed as the successor to the MKR governance token, has not met market expectations. The trend indicates only 8% of MKR tokens have found their way to becoming SKY, signaling that the token holders are hesitant to embrace this transition.
Observations about the token's market performance and its migration process.
Particularly disconcerting is the SKY token's performance, marked by a 23% dip in value over a fortnight, while in contrast, the CoinDesk 20 index noted a 10% uptick.
This evident discrepancy has stirred debates around the interview strategy's effectiveness. Meanwhile, the MKR token has also had its fair share of decline, dropping 24% over the past year.
While SKY token stumbles, the introduction of the USDS stablecoin resonates with success. Since its August debut, its circulation has soared to $1.2 billion, offering a 6.5% savings rate. The stablecoin's traction highlights Sky's components gaining favor within DeFi circles.
How the community perceives the change and the level of exchange adoption.
A notable hurdle for the SKY token has been achieving visibility on centralized exchanges (CEXes). Founder Christensen termed this as a 'classic misstep in DeFi,' admitting he had downplayed the role of CEX listings for liquidity and user adoption.
Voices from the community underscore that the absence of recognition from key platforms like Coingecko highlights the challenges facing the rebrand.
Christensen laid out three plausible paths for the protocol moving forward:
- Persist with Sky as the flagship brand
- Revert to the foundational Maker brand, reinstating MKR at the helm as the governance token
- Craft an evolved Maker brand that blends aspects of the current ecosystem
Feedback straight from users emphasizes a devoted allegiance to the Maker brand, with many underscoring that even though they appreciate the USDS stablecoin, there's no compelling reason to alter Maker's well-etched identity. Such sentiment has been instrumental in catalyzing the anticipated governance vote.
Looking to gather broader perspectives, the protocol is set to conduct a community call ahead of the decisive governance vote on November 4. This will chart whether MakerDAO sticks with the current course or reverts to its tried-and-tested branding.
