Originally published at mrnasdog.com/research/sky/full by MrNasdog.
This is a MrNasdog Pressure Framework analysis of Sky (SKY) — the rebrand-and-redenomination of MakerDAO's MKR — on Metric 1 (sell pressure) and Metric 2 (buy pressure). Narrative (Metric 3) is covered separately. The short version: the migration from MKR to SKY is essentially complete (99.95% converted at a 1:24,000 ratio), and the protocol's USDS stability fees create a real but variable buy-side lever — similar in shape to the old MKR burn-and-mint dynamic, with a different surface.
The setup
In 2024, MakerDAO rebranded to Sky and introduced a new token SKY at a fixed 1 MKR : 24,000 SKY redenomination. The DAI stablecoin was rebranded to USDS (existing DAI still works; both circulate). The Endgame plan splits the protocol into SubDAOs (Spark, Stargate, etc.) with their own tokens. Sky governance still uses SKY (or MKR, which is interchangeable via the 1:24,000 upgrade contract).
Live numbers, origin-first from Ethereum mainnet RPC + Sky docs:
-
SKY total supply: 23,462,665,147 SKY (~23.46B, verified on-chain via
totalSupply()) - Migration status: ~99.95% of MKR converted to SKY (~478K MKR still un-upgraded — small overhang)
- Implied SKY at full conversion: ~23.46B (1:24,000 × original ~977K MKR)
- USDS issued: ~$5B+ across DAI + USDS (stability fee–generating debt)
- Sky has no fixed max supply written into the SKY contract — issuance is governed by a "skyMint" mechanism for incentives + redemptions. Net issuance/redemption is governance-controlled.
The sell ledger
What the design predictably puts on the market.
| # | Source | Tag | Value |
|---|---|---|---|
| 1 | Protocol inflation | Tag B | Sky SubDAO farming incentives — governance-controlled, currently modest |
| 2 | Vesting unlocks (still-locked allocations on schedule) | — | ~0 — no scheduled team vesting (Maker had none; Sky inherits) |
| 3 | Team / DAO / identified-group holdings | Tag B | Sky Foundation / SubDAO treasuries — TBD on-chain enumeration |
| 4 | Bankruptcy estate | — | 0 |
Inflation is discretionary, not scheduled. Unlike NEAR or TAO with hard-coded mint schedules, Sky's skyMint is a governance-callable contract used to fund SubDAO farming programs and protocol incentives. Recent issuance has been modest. Tag B because the address (governance multisig) is known but the timing is discretionary.
Vesting: zero. Maker (Sky's predecessor) was launched without a traditional team vesting schedule — early holders bought MKR in the 2017 sale and through governance. Sky inherits no scheduled vesting.
Tag B is Sky's governance-controlled treasury + SubDAO multisigs. Hard to enumerate cleanly without per-SubDAO address mapping. Flagged as TBD here.
Bankruptcy estate: zero.
The buy ledger
What the design predictably takes off the market.
| # | Source | Value |
|---|---|---|
| 1 | Revenue-backed buyback (Sky's "Smart Burn Engine" / surplus buffer) | Tag A — variable, depends on USDS stability fees and surplus level |
| 2 | Burn mechanism | included in #1 (surplus buffer mechanism) |
| 3 | Locked allocations | — context only |
| 4 | Protocol-level demand (governance only) | small |
This is Sky's structural strength. USDS borrowers pay a stability fee in USDS to the protocol. When the protocol's surplus buffer exceeds a threshold, the excess is used (under Sky's flap auction / smart burn mechanism, the successor to Maker's classic flap) to buy and remove SKY from circulation. This is the closest thing in DeFi to a real revenue-backed buyback.
The rate is variable: in high-USDS-demand periods (high stability fees + lots of borrowing), the buyback accelerates. In low-demand periods, it slows. Recent volume has been modest but non-zero — meaningfully more than UNI's empty buy ledger, meaningfully less than HYPE's Assistance Fund.
Net position
- Sell: discretionary Sky SubDAO incentives + governance-controlled treasury deployment — variable, modest today
- Buy: USDS stability-fee-driven SKY buyback via the surplus buffer — variable, real
Net structural read: roughly balanced today, with both sides governance-sensitive. Sky is the closest token in our coverage to a "fundamentally-revenue-linked" governance token — its buy pressure tracks actual stablecoin demand. That's both its strength (real economic linkage) and its variability (revenue swings with rates and demand).
Compared to the rest of our coverage:
- BNB: structural deflation from burns → favorable
- HYPE: AF buyback > vest → favorable
- SKY: revenue-linked buyback, governance-sensitive → moderately favorable when USDS demand is strong
- UNI: no buyback, no inflation → neutral
- NEAR / TAO / ONDO: structural sell > buy → unfavorable
What to watch
-
USDS stability fee + outstanding debt levels — drives buyback rate. Sky publishes these on dashboards (
sky.money). - Surplus buffer balance — threshold above which the smart burn engine activates.
- Sky governance proposals on SubDAO farming incentives — affects the discretionary issuance line.
- MKR → SKY remaining conversions — ~478K MKR left; small overhang during the tail end of migration.
MrNasdog Pressure Framework analysis of SKY, Metrics 1 & 2. Data + explanation only. Not financial advice. Numbers as of May 2026.
Data note: Total supply read directly from the SKY ERC-20 contract via Ethereum mainnet RPC. Migration math derived from the published 1 MKR : 24,000 SKY ratio. Surplus buffer mechanics per Sky protocol docs (docs.sky.money). The legacy MKR contract still exists; both MKR and SKY circulate during the migration tail.
