MakerDAO rebrands to Sky, but the old OGs' new branding leaves the community puzzled
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MakerDAO rebrands to Sky, but the old OGs' new branding leaves the community puzzled
It's not just a change of name, but also a shift in brand perception.
Navigating Web3 tides with focused insightsBy TechFlow
Come on, let me introduce you to a new project called Sky.
When this word appears, aside from the sense of unfamiliarity, do you also think such an ordinary and common name should belong to some random "shitcoin" project that could be pumped into the sky tomorrow?
You might find it hard to believe that this is actually a rebranding move by MakerDAO—the pioneer of DeFi and the crypto stablecoin DAI.
On August 27, MakerDAO announced its plan to rebrand as Sky, upgrading its native tokens and stablecoin to the new names SKY and Sky Dollar (USDS).
The shift from MakerDAO to Sky involves more than just a name change—it's a transformation in brand identity.
For any sufficiently significant application, claiming a single word in users’ minds is extremely difficult. For instance, you may still instinctively refer to a certain social media platform as Twitter instead of X, calling posts and CTs rather than “posts on X.”
MakerDAO’s standing within the crypto ecosystem might be no less prominent than Twitter’s role in social media.
So why attempt such a challenging endeavor? What exactly has changed with the new Sky, and what is the rationale behind this rebranding?
What Changes to Business and Assets?
The first concern for users is naturally whether their assets will be affected after MakerDAO becomes Sky.
According to Sky’s latest official tweet, the existing MKR and DAI tokens will be upgraded to the new SKY and USDS (Sky Dollar) tokens. The upgrade follows these rules:
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MKR to SKY conversion:
Each MKR can be exchanged for 24,000 SKY tokens. This ratio is fixed, meaning MKR holders will receive a corresponding amount of the new governance token SKY after conversion.
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DAI to USDS conversion:
DAI and USDS will maintain a 1:1 exchange rate. This ensures that each DAI held can be directly converted into one USDS, preserving the stablecoin’s value continuity.
Notably, this token upgrade is entirely voluntary. Users may choose whether or not to convert their MKR and DAI into the new tokens, giving community members greater autonomy.
For MKR holders, converting to SKY preserves their governance rights. Sky promises that the new governance model will be more efficient and transparent.
In addition, Sky has provided a user-friendly migration tool to help users easily complete the transition from old to new tokens.
However, according to the official website, only around 370 users have completed the migration so far, indicating clear resistance and challenges in community education and outreach.
To incentivize more users to migrate to the new SKY tokens, the team has introduced an additional reward mechanism: users who complete the token migration during the beta period will receive 1.25x the amount of SKY and USDS tokens.
Why Rebrand at All?
To most people, MakerDAO’s rebranding feels abrupt, and negative voices have already emerged within the community.
For example, although the name has changed to Sky, the old Twitter account @MakerDAO doesn’t appear to have been properly deactivated or managed. An obscure small account named MakerDAO has since been registered by someone else and used for memes.
In the comments section of Sky’s official announcement, alongside simple congratulatory messages, opposition is also common.
Prominent KOL @stacy_muur posed three soul-searching questions:
"What’s wrong with the MakerDAO brand? Why are you all so obsessed with rebranding? Why are you damaging established brand recognition?"
So what’s the real reason behind Sky’s rebranding? We might find clues in a blog post by MakerDAO co-founder Rune Christensen from May titled “Reconciling the Two Opposing Paths for Decentralized Stablecoins.”
In this article, Christensen outlined key challenges facing MakerDAO and hinted at its future direction—foreshadowing the rebrand:
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Responding to Regulatory Pressure
Christensen noted that decentralized stablecoins face unprecedented regulatory scrutiny. Particularly in the U.S., regulators’ stance toward cryptocurrencies—and stablecoins in particular—is growing increasingly strict. In this environment, MakerDAO needs to redefine itself to adapt to evolving regulatory landscapes. Rebranding as Sky may serve to distance the project from its past identity, creating greater flexibility for future development.
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Technical Upgrades and Restructuring
The article points out that MakerDAO requires major technical upgrades, including improvements to smart contracts, optimization of governance mechanisms, and enhanced system scalability.
Hence, the logic is that the rebrand to Sky represents not just a surface-level change but a comprehensive overhaul of the underlying technical architecture. In the crypto space, such fundamental transformations often call for a completely new brand image—similar to Fantom’s evolution into Sonic.
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Need for Broader Brand Recognition to Enable Mass Adoption
To achieve widespread adoption of its stablecoin, regulatory compliance is essential—but simplifying brand perception is equally important. The name “MakerDAO” may seem obscure and cryptic to those outside the crypto world. In contrast, “Sky” is simple and memorable, helping attract a broader user base, especially individuals unfamiliar with cryptocurrency.
Rebranding Wave: A New Crypto Trend?
In fact, MakerDAO isn’t the only project undergoing a rebrand.
Over the past year or two, rebranding has gradually become a new trend across the crypto industry.
When legacy tokens feel stale and speculators crave novelty, changing the brand name, introducing a new token symbol, and restarting with a fresh price chart always sounds more exciting.
Examples include Fantom becoming Sonic, several AI projects like FET merging into ASI, and Galaxy rebranding to Galxe then evolving into Gravity… Such rebrandings are increasingly common in the crypto market.
Data source:@cornergirl999, compiled by TechFlow
According to recent statistics from an analysis of token upgrades and mergers in the crypto space, rebranding, token migration, or consolidation does not guarantee immediate or long-term positive price performance.
Therefore, projects must ensure there are solid, well-justified reasons explaining “why migrate or merge.” Only then can they establish logical and operational legitimacy, providing a sound foundation—not just hype—for token speculation.
MakerDAO’s transformation into Sky clearly follows this emerging crypto trend of rebranding.
But whether its token and business will see meaningful improvement, or if this is merely superficial change without substantive evolution, remains to be seen over time.
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