Sky proposes penalty for delays in converting MKR to SKY

• Sky proposes 1% fee for late conversion
• Endgame accelerates transition of MKR token to SKY
• 81% of MKR have already migrated to the SKY token

Sky, the DeFi protocol formerly known as MakerDAO, has opened a governance vote to levy a 1% fee on delayed MKR-to-SKY conversions. The proposal, called the "Delayed Upgrade Penalty," aims to accelerate the final transition to the new governance token following the rebranding carried out in August.

According to the plan, the fee would come into effect on September 22nd if approved, increasing by one percentage point every three months. Updates made before the deadline would not be penalized, encouraging MKR holders to quickly migrate to SKY.

The measure is part of the Endgame strategy, which foresees the retirement of MKR and the consolidation of SKY as the protocol's sole governance token. According to the team, the change will reduce the complexity of managing two parallel tokens and bring greater clarity to new users and exchanges managing ecosystem governance.

In May, a previous proposal had already officially transferred voting power to SKY, in addition to disabling the possibility of returns for MKR. This decision solidified the transition and marked the final stages of the process, aligning the brand with the new token.

The current vote was published on the vote.sky.money portal, where holders can view the full package and cast their votes. The developers emphasize that the goal is to accelerate ecosystem standardization and definitively end the use of MKR, which has become obsolete within Sky's governance.

The vote to implement the Delayed Upgrade Penalty for upgrading MKR to SKY is live.

As part of the ongoing MKR to SKY Upgrade process, the Sky Atlas specifies that the September 18, 2025 Executive Vote will set the Delayed Upgrade Penalty for the new MKR to SKY conversion… pic.twitter.com/1fMTQ3Gy6a

— Sky (@SkyEcosystem) September 18, 2025

Recent dashboard data shows that approximately 81% of MKR tokens have already been converted to SKY. However, approximately 176.070 MKR remain in circulation, valued at over US$316 million. The conversion rate remains at 1 MKR = 24.000 SKY, while Sky is also maintaining its path to migrating its stablecoin DAI to USDS at a 1:1 ratio.

This move reinforces Sky's intention to quickly complete the governance token transition, solidifying SKY as a central pillar of its DeFi ecosystem.