MKR and DAI Get a Rebrand: It’s Not Going Great

MakerDAO's recent rebranding to Sky, along with the introduction of the USDS stablecoin and SKY governance token, has elicited a range of reactions within the decentralized finance (DeFi) community. The initiative aimed to simplify DeFi and broaden the platform's appeal.

At this point, it’s clear that the transition hasn’t been without challenges. A vocal contingent of users have expressed confusion over the new branding and functionality, which has raised questions about the protocol's identity and cohesion. This sentiment is reflected in the relatively low adoption rates, with only about 15.5% of DAI and 10.6% of MKR holders opting to upgrade to USDS and SKY, respectively.

In response to the lukewarm reception, the speculation is that MakerDAO has been contemplating reverting to its original branding. Founder Rune Christensen acknowledged that the Sky branding may have caused confusion and emphasized the community's strong attachment to the Maker brand. Nobody likes change, and the MakerDAO community is certainly no exception.

While the rebranding sought to position MakerDAO for broader DeFi adoption, like so many rebrands, it has encountered user confusion and adoption hurdles. The ongoing discussions within the community highlight the importance of aligning branding and product changes with user expectations and the platform's core values.