Deep Dive
1. Delayed Upgrade Penalty Ramp-Up (Dec 2025)
Overview:
A 1% quarterly penalty for delayed MKR→SKY conversions begins on September 18, 2025, escalating every three months. By December 2025, the penalty will rise to 2%, incentivizing remaining MKR holders to upgrade (Sky Protocol Docs).
What this means:
This is neutral-to-bearish for SKY in the short term, as forced conversions could create selling pressure. However, it strengthens governance centralization by phasing out MKR.
2. Powerhouse Spin-Off Finalization (Q4 2024)
Overview:
Powerhouse, Sky’s decentralized operations platform, aims to become an independent ecosystem actor. Key deliverables include legal entity setup (50% complete), tokenomics design (15% complete), and community growth initiatives (Sky Fusion Roadmap).
What this means:
This is bullish long-term, as a functional spin-off could attract external projects to Sky’s infrastructure. However, delayed tokenomics finalization poses execution risks.
3. Core Simplification Process (2025)
Overview:
Proposed in July 2025, this initiative seeks to reduce bureaucratic overhead in Sky’s governance model, potentially accelerating the launch of new "Stars" (sub-ecosystems like Spark and Grove) (Sky Ecosystem tweet).
What this means:
This is bullish if implemented successfully, as faster decision-making could improve USDS adoption. Watch for voter turnout in upcoming governance polls.
4. Institutional DeFi Expansion (2025)
Overview:
Sky is bidding to issue Hyperliquid’s USDH stablecoin, offering 4.85% yields and $2.2B liquidity. A decision is expected post-September 2025 (Cointelegraph).
What this means:
This is bullish for USDS utility, potentially onboarding institutional capital. Failure to win the bid could redirect resources to existing Stars like Grove.
Conclusion
Sky’s roadmap balances penalty-driven tokenomics with ecosystem growth, targeting both retail and institutional adoption. The December penalty hike and Hyperliquid bid outcomes will test SKY’s resilience. Can Sky’s Stars outcompete standalone DeFi protocols in revenue generation?