Sky Governance Approves Emergency Proposal Amidst Controversy
Sky, formerly known as MakerDAO, has executed an emergency proposal that significantly alters the role of MKR within its ecosystem. Key changes include:
- Elimination of the 5% exit fee on MKR withdrawals
- Expansion of borrowing against MKR collateral
- Increase in borrowing rates and decrease in liquidation thresholds
Critics argue these adjustments heighten risk exposure for the protocol, especially with MKR now having one of the highest loan-to-value ratios in DeFi.
Concerns have arisen regarding the approval process and transparency, particularly as this move coincides with silencing governance critics. Sky's founder, Rune Christensen, defended the changes as necessary to prevent a governance takeover, alleging collusion between activist investors and certain groups within Sky.
PaperImperium, representing some governance participants, claimed to maintain independence from Nexo, despite rumors linking the two. Nexo acknowledged their historical relationship with Maker and promised detailed insights into protocol developments.
Supporters of the proposal state it aims to simplify governance processes and enhance efficiency. The elimination of the exit fee is framed as a step towards reducing complexity, allowing SKY holders to delegate decisions more effectively.
The community remains divided, questioning whether the proposal prioritizes security or consolidates control within the governance framework. Concerns persist about the future of governance processes in light of this incident.