SKY jumps nearly 10% after governance vote slows new token creation while buybacks tighten supply
SKY token surged 10% following a governance vote that reduced staking emissions and expanded USDS credit infrastructure.Summary
The native token of the Sky DeFi platform, SKY, climbed nearly 10% after a governance proposal executed on March 2 implemented several bullish changes. The proposal reduced the rate of new token issuance by normalizing SKY staking emissions to approximately 838.18 million tokens over the next 180 days, a reduction of about 161.82 million tokens compared to the previous schedule. Concurrently, the protocol continues an aggressive buyback program, spending about $114.5 million to repurchase 1.83 billion SKY tokens, effectively removing about 3.6 million tokens daily from circulation. These combined actions—slower supply growth and active buybacks—have tightened the token's effective supply. Furthermore, the governance vote approved new infrastructure, including two "Launch Agents," to expand credit markets connected to the Sky protocol's USDS stablecoin system. This shift aligns with a broader industry trend where protocols move away from inflation-heavy incentives toward models based on buybacks and reduced emissions, tying token demand more directly to protocol activity.
(Source：CoinDesk)