Gate News message, April 28 — Rune Christensen, founder of Sky Protocol, published a proposal on the Sky governance forum on April 24 to permanently exit the protocol’s bootstrap funding phase following the transfer of Genesis Capital to Grove, an institutional credit allocator in the Sky Agent Network.
The proposal would simplify Sky’s Treasury Management Function (TMF) by collapsing its current five-step conditional waterfall into four steps. Currently, net protocol revenue flows through Security and Maintenance, Aggregate Backstop Capital, Fortification Conserver, Smart Burn Engine (which funds SKY buybacks), and staking rewards for SKY and USDS holders. Under the new structure, Fortification Conserver would be removed and its allocations redistributed at a fixed rate across remaining categories. The proposal will also retire legacy mechanisms including the Net Revenue Ratio, phase-based spending distinctions, activity-based staking reward tiers, and Short Term Trading provisions.
Genesis Capital was Sky’s mechanism for seeding new agents with USDS, the protocol’s stablecoin, to deploy capital. The final transfer sent approximately 20.8 million USDS to Grove on April 8, according to Sky’s official announcement. Grove’s total allocation was roughly 25 million USDS, reduced by pre-token-generation-event expenses of about 3.6 million USDS and a token launch penalty of approximately 565,000 USDS.
Sky Protocol, which operated as MakerDAO for its first nine years, continues expanding its DeFi footprint. According to DeFiLlama, USDS supply has reached roughly $11 billion, making it the third-largest stablecoin by market capitalization. The SKY token is trading at $0.089, up more than 12% over the past week, with approximately $2 billion in market capitalization. Earlier in 2026, Sky governance approved up to $2.5 billion for deployment through stablecoin incubator Obex, and in April, the protocol launched native USDS on Avalanche via the SkyLink bridge. Grove, one of the network’s largest agents, announced in early April that it had crossed $3 billion in total value locked.
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