MakerDAO Considers a Return to Original Branding After Sky Governance Token Rebrand Faced Challenges
- Barbara StreisandOriginal
- 2024-10-24 03:34:09916browse
The rebrand, announced in late August and implemented on September 24, allowed holders of the original MKR governance token to convert
MakerDAO is considering a return to its original branding following significant challenges with the rebrand to its Sky governance token, Blockworks has learned.
The rebrand, which was first announced in late August and implemented on September 24, saw holders of the original MKR governance token able to convert to the new SKY governance token at a 1-to-24,000 exchange rate. However, only around 10.7% of MKR token holders have made the conversion to SKY.
The USDS stablecoin, meanwhile, has seen positive growth, reaching a market cap of $1.26 billion. Rune Christensen, Maker’s co-founder, noted that the DeFi community showed a strong preference for the MKR token over the new SKY token.
As a result, the Maker team will vote on three options on October 28: Continuing with Sky as the core brand, reverting fully to Maker’s original brand identity or returning to the original branding with minor updates to align it with USDS and the StarDAOs.
The redenomination from MKR to SKY was designed to make the token more appealing to retail investors by reducing its price per unit. However, this strategy has been hindered by the fact that the SKY token has not been listed on any centralized exchanges.
In a bid to encourage conversion, Sky planned to introduce rewards for staking SKY, but these incentives have been criticized for being difficult to understand.
Critics have also pointed to the fact that Maker is said to have spent $50 million on the rebrand, which they argue has ultimately failed. Christensen acknowledged the criticism but clarified that the entire sum was not spent solely on rebranding. He highlighted that the rebrand also aimed to drive demand for the USDS stablecoin, which has been successful.
Since the rebrand, Maker has also launched a number of initiatives, including integrating USDS with Aave and expanding USDS to Solana and other Ethereum Layer 2 solutions.
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