Sky to Impose 2% MKR-SKY Upgrade Penalty Starting December 15
Sky has announced that a new vote will open on December 11, proposing to raise the Delayed Upgrade Penalty for late MKR-to-SKY conversions from 1% to 2%. If the vote passes, the 2% penalty will apply to all conversions beginning December 15. The change is part of the ongoing transition from MKR to SKY. Refer to the official tweet by DAI: A new vote will go live on Thursday, December 11th to increase the Delayed Upgrade Penalty from 1% to 2% for late conversion of MKR to SKY.If the vote passes, a 2% penalty will apply to all MKR to SKY upgrades starting Monday, December 15th, 2025. DAI InfoMakerDAO is a key player in the Decentralized Finance (DeFi) sphere, featuring a stablecoin, DAI, which is collateralized by cryptocurrency and pegged to the US dollar. The project is managed by a Decentralized Autonomous Organization (DAO), a governance structure involving token holders in decision-making processes.The operational mechanism of MakerDAO revolves around the use of Maker Vaults where users lock their cryptocurrency at a specific Liquidation Ratio, enabling them to generate DAI. Overcollateralization is utilized to mitigate risks associated with crypto’s price volatility. If the collateral“s value drops below the Liquidation Ratio, the collateral is liquidated to cover potential losses. Stability of DAI is ensured by the DAO”s regulation of the Stability Fee and DAI Savings Rate, effectively controlling the token’s supply and demand.As a stablecoin, DAI offers the typical benefits of crypto assets such as worldwide transferability, utility in transactions, and functionality as a hedge against profit and loss fluctuations. Additionally, DAI can be leveraged or invested in a DAI Savings Rate contract for interest. Governance within the MakerDAO ecosystem is facilitated through the use of MKR tokens, allowing holders to participate in decision-making processes ranging from alterations in Stability Fee, DAI Savings Fee, to modifications in the team structure and smart contracts.