Market
Sky or Maker? Vote Reveals MakerDAO’s Centralization Concerns
Sky will not re-rebrand as MakerDAO after a community vote that favored keeping the new identity.
The rebranding is central to founder Rune Christensen’s “Endgame” strategy, which aims to reshape the protocol for more competitiveness and resilience.
MakerDAO Governance Vote Dominated By Whales
Sky confirmed the identity stay in a post on X after an on-chain vote to continue using the new brand name as the ecosystem’s primary backend protocol.
“This decision supports the ongoing transition from MKR to SKY and establishes Sky as the core brand, denoting both the Sky app frontend and the backend Sky Ecosystem and Sky Protocol,” the project team said.
The governance polls show that the proposal to revert Sky to its original Maker branding faced substantial opposition. Specifically, nearly 80% of the vote share leaned toward maintaining the Sky identity as the protocol’s “backend protocol brand.”
The decision revealed an underlying centralization issue within MakerDAO’s governance. According to Sky’s voting metrics, four large entities controlled most of the voting power. Each entity secured about 20% of the votes, and only one prominent entity voted against the proposal. This left smaller stakeholders with limited influence over the outcome.
“Four MKR whales hold 98% of voting power, rejecting the rebranding of the DeFi protocol Sky back to Maker. This highlights the influence of a few in decentralized governance. It raises concerns about true decentralization in such ecosystems,” said HUDI, a web3 data layer builder.
Nevertheless, this turnout to maintain Sky aligns with Christensen’s ambitious “Endgame” strategy, kickstarted in late 2022. The Sky co-founder proposed the strategy to revitalize what he perceived as a stagnating DeFi project.
He wants to diversify MakerDAO’s services and develop new products. The plans include launching a range of new stablecoins, creating an alternative governance token called SKY, and establishing “subDAOs.”
In September, MakerDAO members voted to give DAI holders the option to exchange their tokens for a new stablecoin named Sky Dollar (USDS) at a 1:1 ratio. Likewise, MKR holders could swap their tokens for SKY tokens at a 1:24,000 ratio.
Of note is that the organization clarified that DAI and MKR tokens will continue to exist alongside USDS and SKY in the near future. Nevertheless, the introduction of SKY and USDS represents a strategic effort to attract new users and accommodate diverse regulatory and decentralization demands in the market.
Products and Tokens Under the Sky Brand
With Sky now in place, the rebranding may proceed to introduce a new suite of tokens and products under the new banner. This includes launching decentralized and regulatory-compliant stablecoins like puredai and NewStable, respectively. These products target different segments: puredai for censorship-resistant uses and NewStable for broader, compliance-driven adoption.
Sky is preparing to introduce these stablecoins on Solana and Ethereum Layer-2 Base, suggesting possible integrations across blockchains and maximizing accessibility. Another notable development is Sky’s planned collaboration with Aave, a leading DeFi protocol, to offer stacked USDS rewards. Sky will also introduce a staking system using both SKY and MKR tokens alongside a custom bridge called SkyLink for EVM chains.
Despite the strategic rationale behind the rebrand, the move has not been universally welcomed. Community members have voiced concerns that the new brand does not resonate with Maker’s established reputation. Others continue to cite confusion between SKY and MKR. Christensen attempted to quell some of the fears.
“It’s gonna take a bit more planning but I will make a follow-up proposal where MKR will be renamed to indicate it is a SKY wrapper. This way, MKR holders will automatically upgrade to SKY and there will be no confusion around two tokens. This will not affect tokenomics,” the Sky co-founder explained.
While Christensen’s Sky brand could reach new users, it also risks alienating legacy supporters who identify with the original Maker. For investors, the vote reflects the complex dynamics at play within MakerDAO’s governance, where large holders wield outsized influence. In such situations, changes can carry both potential upsides and risks for the protocol’s market perception.
The Endgame strategy could ultimately redefine Sky as a leader in DeFi. Nevertheless, this hinges on the successful rollout of its ambitious projects. The ability to harmonize with the demands of a loyal but change-averse community is also a factor.
According to BeInCrypto data, the Maker (MKR) token has surged nearly 5% following this news, currently trading at $1,503.47.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Token Unlocks to Watch Next Week: AVAX, ADA and More
Token unlocks release tokens previously restricted under fundraising agreements. Projects strategically schedule these releases to minimize market pressure and prevent token price declines.
Here are three major token unlocks to keep an eye on next week.
Immutable (IMX)
- Unlock date: November 29
- Number of tokens unlocked: 24.52 million IMX
- Current circulating supply: 1.67 billion IMX
Immutable, a Layer-2 solution for scaling NFTs on Ethereum, raised $12.5 million in just one hour during its IMX token sale on CoinList in September 2021. By March 2022, the project secured $60 million in an investment round, followed by an additional $200 million from investors such as ParaFi Capital, Declaration Partners, and Tencent Holdings.
On November 29, Immutable will release 24.52 million new IMX tokens into circulation. These tokens will support project development and growth within the broader Immutable ecosystem.
Optimism (OP)
- Unlock date: November 30
- Number of tokens unlocked: 31.34 million OP
- Current circulating supply: 1.25 billion OP
Optimism, a Layer-2 scaling solution, enhances transaction speed and reduces costs on the Ethereum mainnet. Its OP token is vital for governance, enabling holders to vote on proposals and influence the network’s development and management.
On November 30, Optimism will release 31.34 million OP tokens into circulation. Tokenomist (formerly TokenUnlocks) reports that core contributors and investors will receive these tokens.
1Inch (1INCH)
- Unlock date: November 30
- Number of tokens unlocked: 98.74 million 1INCH
- Current circulating supply: 1.27 billion 1INCH
1inch is a decentralized exchange aggregator that pools liquidity from multiple DEXs to offer users the best trading rates. It streamlines trading by identifying the most efficient transaction routes, minimizing slippage, and lowering fees.
On November 30, 1inch will unlock nearly 100 million 1INCH tokens. These tokens are allocated for developers, early investors, and venture capital funds.
Sui (SUI)
- Unlock date: December 1
- Number of tokens unlocked: 64.19 million SUI
- Current circulating supply: 2.84 billion SUI
Sui is a high-performance Layer-1 blockchain designed to enhance network operations and security using a Proof-of-Stake consensus mechanism. Developed by Mysten Labs, the project was founded in 2021 by former Novi Research employees who were instrumental in creating the Diem blockchain and the Move programming language.
The SUI token supports governance, allowing holders to vote on key proposals and influence the platform’s direction. On December 1, the next token unlock will release a significant portion of tokens allocated to Series A and B participants, the community reserve, and the Mysten Labs treasury.
ZetaChain (ZETA)
- Unlock date: December 1
- Number of tokens unlocked: 53.89 million ZETA
- Current circulating supply: 517.85 million ZETA
ZetaChain is a decentralized blockchain platform designed to enable seamless interoperability between different blockchain networks. The platform’s standout feature enables cross-chain communication, allowing the exchange of tokens and data across blockchains like Ethereum and Binance Smart Chain.
On December 1, ZetaChain will release nearly 54 million ZETA tokens. These tokens will support various initiatives, including a user growth pool, an ecosystem growth fund, rewards for core contributors, advisory roles, and liquidity incentives.
Next week’s cliff token unlocks will also include Cardano (ADA), Ethena (ENA), and dYdX (DYDX), among others, with a total combined value exceeding $540 million.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Is the XRP Price Decline Going To Continue?
Ripple’s XRP hit a year-to-date high of $1.63 on November 23. However, fading bullish momentum has made future traders doubtful about the rally’s sustainability. An increasing number are opening short positions, expecting a near-term price correction.
Currently trading at $1.44, XRP has declined by 6% in the past 24 hours. This analysis explores the recent activity in the token’s futures market and assesses the likelihood of a continued XRP price decline.
Ripple Traders Bet on a Price Drop
A drop in its open interest has accompanied XRP’s price decline over the past 24 hours. Per Coinglass data, this sits at $2.52 billion, falling by 9% during that period.
Open interest refers to the total number of active contracts in a derivatives market, such as futures or options, that have not been settled. When open interest drops as an asset’s price falls, traders are closing their positions to lock in profits or minimize losses, indicating reduced market participation.
In XRP’s case, this suggests waning confidence in the continuation of the uptrend and hints at a sustained reversal in the asset’s price movement.
Moreover, XRP’s Long/Short ratio confirms this bearish outlook. As of this writing, this sits at 0.96%, with 51% of all positions opened shorting the altcoin.
The Long/Short ratio measures the proportion of long positions (bets on price increases) to short positions (bets on price decreases) in a market. When the ratio is below 1, it indicates that there are more short positions than long positions, suggesting a bearish sentiment among traders.
This imbalance in the XRP market reflects growing pessimism about the asset’s near-term prospects and may contribute to continued downward pressure on its price.
XRP Price Prediction: More Declines Imminent
XRP is currently trading at $1.44, holding above the $1.33 support level. If bearish sentiment intensifies, the price could drop to this support. A further decrease in buying pressure at that level may push XRP down to $1.15.
On the other hand, a shift in market sentiment from negative to positive will invalidate this bearish outlook. Should this happen, the altcoin will reclaim its year-to-date high of $1.63 and attempt to surpass it.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Winklevoss Urges Scrutiny of FTX and SBF Political Donations
Gemini co-founder Cameron Winklevoss has called for a renewed investigation into the dropped campaign finance charges against Sam Bankman-Fried, the convicted founder of the now-defunct FTX exchange.
Winklevoss emphasized the need for the incoming US Attorney General to address unresolved concerns about how these charges, tied to election interference involving stolen customer funds, were handled.
Winklevoss Demands Probe Into FTX-Linked Election Interference Accusations
In a November 23 post on X, Winklevoss expressed the belief that the campaign finance allegations remain a critical issue. He pointed to the Department of Justice under Merrick Garland, which declined to pursue these charges due to extradition technicalities with the Bahamian government.
According to Winklevoss, the DOJ chose not to work through the required legal processes to include the campaign finance violations in the indictment, leaving the matter unaddressed.
“Merrick Garland’s DOJ refused to pursue campaign finance charges against SBF because they were not included in his extradition…Since when has paperwork stood in between a prosecutor and adding more charges? Especially when it involves election interference with $100m of stolen customer funds,” Winklevoss stated.
Federal prosecutors initially dropped the campaign finance charge last year, attributing their decision to objections from Bahamian authorities. This charge involved over $100 million allegedly funneled from Alameda Research to fund more than 300 political contributions.
According to the indictment, these contributions, often made through straw donors or corporate funds, aimed to enhance Bankman-Fried’s influence in Washington, D.C.
The indictment also noted that Bankman-Fried became a top political donor in the 2022 midterm elections. He allegedly used the funds to gain favor with candidates across party lines, potentially shaping legislation favorable to FTX and the broader crypto industry.
Winklevoss’ remarks come as other key figures in the FTX collapse face their consequences. While Caroline Ellison and Ryan Salame received sentences of two years and 7.5 years, respectively, Gary Wang and Nishad Singh avoided prison by cooperating with prosecutors. Bankman-Fried is currently serving a 25-year prison sentence for fraud and other crimes.
Meanwhile, FTX has announced plans to implement its approved reorganization strategy starting in January. The exchange’s bankruptcy managers have recovered billions of dollars for creditors and are intensifying efforts to reclaim assets held by other entities.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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