Crypto Gloss

Maker (MKR)

MKR was MakerDAO’s governance and backstop token. Maker has since rebranded as Sky, and SKY replaced MKR as the protocol’s active governance token. Sky maintains a conversion route for legacy MKR, so this entry keeps the existing MKR URL to explain its history, migration and remaining role.

Market Data Status

No live market table is shown because CoinGecko’s legacy MKR listing currently reports zero circulating supply and no market capitalization, even though a price field remains available. A price without a usable supply and market-cap basis could mislead readers. For the successor token’s market listing, see Sky (SKY) on CoinGecko. This page describes legacy MKR and does not substitute SKY’s market data.

How It Works

Under the former MakerDAO system, MKR was used in governance and as a system backstop. Holders voted on risk settings for Maker Vaults and the DAI stablecoin, while the protocol could mint MKR during a shortfall and burn it under surplus or fee mechanisms. These describe the legacy design; they should not be presented as the current governance or loss-absorption role of SKY.

Sky’s current documentation identifies SKY as the active governance token. The Maker-to-Sky transition introduced a fixed gross conversion rate of 1 MKR to 24,000 SKY. The official docs describe more than one converter route/version: the general SKY token page describes a two-way, fee-free converter, while the token-holder migration guide describes a one-way upgrade path with a delayed-upgrade-penalty schedule after its relevant governance upgrade. Check the live Sky portal and the current converter version before taking action; the route, direction and any applicable penalty may differ.

The conversion is not the same thing as holding a stablecoin. MKR and SKY are governance-related assets; DAI and USDS are separate dollar-pegged tokens in the wider Maker/Sky ecosystem.

Tokenomics and Migration

MKR’s original supply could move in both directions. In the legacy design, protocol surplus could reduce supply through burns, while uncovered bad debt could create new MKR through recapitalization auctions. That is why an old MKR supply figure should not be treated as an immutable current cap.

Sky’s rebrand introduced SKY at a gross 1:24,000 conversion ratio. The official upgrade timeline records the governance migration going live on May 19, 2025, and a delayed-upgrade-penalty phase beginning on September 18, 2025. The timeline says the initial penalty was 1% and could rise by one percentage point every three months unless Sky Governance decided otherwise. The token-holder guide and token page describe different converter versions, so these schedule details are not a substitute for checking the active converter and current fee before conversion.

The term tokenomics covers these supply, governance and incentive rules. Current supply and voting data for SKY should be checked on Sky’s documentation and the current SKY market listing; CoinGecko’s legacy MKR endpoint is not reporting a usable circulating supply or market capitalization in this review.

Uses and Governance

  • Historical governance: MKR formerly voted on Maker risk parameters and protocol decisions.
  • Legacy conversion: MKR can be upgraded to SKY through the protocol’s published converter system, subject to the active route and its rules.
  • Historical backstop: legacy Maker could mint MKR to cover a system deficit; the 2025 migration disabled MKR debt auctions and moved governance to SKY.

Do not infer current voting rights from an MKR balance. The migration changed the active governance token, and Sky’s current governance-token rules are documented separately.

History

  • MakerDAO era: MKR was the governance and recapitalization token for the protocol that issued DAI.
  • 2024: Maker’s Endgame rebrand introduced Sky, the SKY token, and USDS. The planned gross MKR-to-SKY conversion ratio was 1:24,000.
  • May 19, 2025: Sky’s official timeline marks the governance migration go-live. The upgrade moved active governance toward SKY and disabled MKR debt auctions.
  • September 18, 2025 onward: Sky’s timeline lists a delayed-upgrade-penalty phase for MKR that remains subject to governance updates.

Common Misconceptions

  • “MKR is still the active governance token.” Sky’s documentation identifies SKY as the active governance token after the migration. MKR is retained as a legacy asset with a conversion route.
  • “MKR and SKY are interchangeable at every venue.” The protocol documents a fixed gross ratio, but exchanges and converter versions may use different routes, timing or fees. Confirm the exact asset and conversion terms before transferring.
  • “MKR is the same thing as DAI or USDS.” MKR and SKY are governance-related tokens; DAI and USDS are separate stablecoins.
  • “An MKR market price tells the whole story.” CoinGecko’s legacy MKR record currently has no reported circulating supply or market capitalization. For active governance-token market information, consult SKY separately.

Social Media Sentiment

  • A January 10, 2026 r/MakerDAO discussion asked whether to keep legacy MKR, convert it to SKY, or sell after a large price decline. Replies disagreed: some urged migration because of the delayed-upgrade penalty, while others questioned whether SKY changed the investment case. An October 11 reply focused on avoiding sunk-cost decisions. This is a small, self-selected thread about personal investment choices, not a measure of overall holder sentiment or reliable financial guidance. Read the discussion.

Last updated: 2026-10

Related Terms

  • Governance Token — a token whose defined role includes protocol decision-making.
  • Stablecoin — a digital asset designed to maintain a relatively stable value.
  • Tokenomics — the supply, incentives and economic rules associated with a cryptoasset.

See Also

Sources