Balancer Sets a Deadline for MKR to SKY Token Migration

Sky's token migration from MKR to SKY is approaching its final deadline. MKR holders have until September 18 to make the necessary swaps to avoid penalties, as Balancer, the decentralized exchange, transitions to support the new governance token for the rebranded Sky Ecosystem.

Key Takeaways

MKR holders must migrate to SKY by September 18 to avoid penalties.
Balancer has introduced a new V3 reCLAMM pool for Sky liquidity support.
The migration is a crucial aspect of MakerDAO's rebranding efforts.
Exchanges like Binance and Kraken are adapting by suspending MKR trading.

Balancer announces MKR to SKY migration deadline

Understanding the Importance of the SKY Token Migration

The transition from MKR to SKY plays a significant role in MakerDAO’s rebranding initiative dubbed the “Endgame,” which commenced in late 2024. This overhaul modernizes the protocol, introducing updated tokenomics and clearer governance structures.

The SKY token consolidates governance authority into a single entity while incorporating new features, such as staking rewards for USDS, an upgraded version of Dai.

To encourage greater retail participation and boost liquidity, the redenomination of tokens operates on a fixed 1:24,000 ratio. A penalty mechanism has also been established to expedite migration and ensure adherence to the Sky ecosystem, starting with a 1% deduction that increases every three months.

Big moment for @SkyEcosystem (formerly MakerDAO) 🌊
The $MKR → $SKY migration deadline hits September 18th, and penalties can begin after September 22nd if approved by governance.
Balancer has proudly supported MKR liquidity for years.
Now it's time to evolve with them 🧵
— Balancer (@Balancer) September 13, 2025

The redenomination aims to facilitate lower governance token costs, encouraging retail investors to participate actively and thereby enhancing liquidity. As the penalty escalates, it is structured to motivate faster migration over time, ultimately reaching a potential 100% penalty over 25 years.

Adjustments by Exchanges and Other Protocols

Several major exchanges, including Binance, Kraken, and Crypto.com, have already begun implementing measures for the transition. They have suspended MKR trading, moving towards automatic conversions to SKY and winding down MKR futures markets in anticipation of the new SKY listings.

Additionally, Balancer’s newly introduced SKY/WETH reCLAMM pool offers liquidity providers innovative access to self-adjusting concentrated liquidity—described as “next-generation pool tech” for the emerging governance model of Sky.

As of early September, approximately 61% of MKR tokens had already been successfully converted to SKY, while nearly 40% still require migration. With the deadline rapidly approaching, Balancer strongly encourages liquidity providers and MKR holders to act promptly to avoid penalties and prepare for the new era of the Sky ecosystem.