Rune Christensen, the co-founder of Sky (formerly MakerDAO), has announced a proposal for a “strictly deflationary tokenomics” model, aiming to halt token emissions and decrease the total supply of the core token. This proposal seeks to prevent new token emissions under “normal conditions,” regardless of whether the core token remains Maker (MKR) or transitions to SKY, aligning with the platform’s rebranding.
To follow the governance vote on whether to keep Sky or recenter the Maker brand, I'm preparing a proposal that clarifies tokenomics and other key questions.
Deflationary Tokenomics
This proposal would change the core token (Regardless of whether the outcome is MKR or SKY) to…— Rune (@RuneKek) October 30, 2024
The new token structure would ensure that the chosen token is supported by long-term supply reduction and a burn mechanism, mirroring MakerDAO’s original tokenomics model. Under the proposed model, no new tokens would be issued in regular circumstances, leading to a gradual decline in the token supply. However, an exception would be made for “emergency” situations, such as a collateral shortfall that could jeopardize the solvency of stablecoins like USDS or DAI.
Christensen’s proposal has sparked discussions within the community, with some members expressing concerns about the potential impact on the platform’s liquidity and incentives. Others support the move towards a deflationary model, arguing that it could strengthen the token’s value and long-term sustainability. The final decision on the proposal will be made through the platform’s governance process, involving voting by token holders.
