MakerDAO Changes Name to Sky

MakerDAO, the protocol behind the DAI stablecoin, recently announced that it is changing its name to “ Sky “. But this name change is only the facade

MakerDAO, the protocol behind the DAI stablecoin, recently announced a change in its name to “ Sky “. This name change, however, is merely the surface-level aspect of a deeper restructuring being undertaken by the protocol.

In fact, the proposal, titled “ Endgame “, which aims to attract ” 100 billion » of dollars of capitalization to the stablecoin of the project, revises among others the protocol's policy on freezing assets for malicious actors.

This feature, already present on USDT and USDC, the 2 most popular stablecoins in the crypto sphere, will be implemented in the code of Sky's new stablecoin: the USDS.

Although this step is mandatory to comply with anti-money laundering (AML) regulations and to claim mass adoption, it creates debate within the crypto community.

Indeed, DAI has long been recognized as the most decentralized stablecoin on the market. So while this new paradigm for Sky may attract an influx of capital from institutions, DAI’s original users may decide to turn their backs on it.

However, decentralization advocates will have another alternative. The protocol is also launching another version of its stablecoin, called “PureDAI” for which asset freezing will not be possible. Although liquidity on this asset may be reduced, the initiative deserves to be highlighted.

In parallel with these events, the protocol’s governance token, still called MKR to this day, has recorded a loss of 38% over the last 30 days. Its price is currently at $1,780.

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Source: MakerDAO Official Forum

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Theo Zananiri

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