Sky wallet

What is Sky (SKY)?

SKY is the governance token of Sky Protocol, the system that issues the USDS stablecoin and that grew out of Maker Protocol after its 2024 rebrand. Holding SKY does not give you a claim on USDS or on protocol income; it gives you a vote. SKY holders decide on the parameters that keep USDS pegged to the dollar, on which collateral the protocol accepts, and on how the protocol's treasury and sub-units are run. There is no company behind it: the token holders are the management.

On the practical side, SKY is a standard ERC-20 token. It has no token account to open and does not change balance on its own; every transfer is an ordinary Ethereum transaction, so the wallet that holds SKY needs a little ETH for gas. SKY can also be locked in the protocol's Staking Engine, where a staked position can delegate its voting power and can be used as collateral to borrow USDS against it. Locked SKY leaves the wallet balance until it is withdrawn.

Two things trip holders up. First, SKY replaced MKR, the old Maker governance token, at a base rate of 24,000 SKY per 1 MKR, reduced by a delayed-upgrade penalty that grows over time. Both tokens still exist as separate contracts, so a balance of MKR does not show up as SKY and vice versa; MKR has to be converted through the protocol's upgrade contract, and the conversion is one-way. Second, the ticker SKY has been used by an unrelated older coin (Skycoin), which lives on its own chain and has nothing to do with Sky Protocol. When adding the token or reading a price, check that you are looking at the Ethereum governance token.

Supported networks in Tangem (1): Ethereum.

A governance token like this is usually bought once and then sits for a long time, touched only when a vote or a delegation needs signing. That is a job for a key that never has to be typed out or re-imported: in Tangem the private key is generated inside the card's chip and stays there, and the backup is a second identical card rather than a seed phrase on paper. For an asset whose whole point is a long-held vote, that is the arrangement worth having.