Sky proposes simplifying treasury management, shifting from governance-driven to rule-constrained expenditures.

Golden Finance reports that Sky has proposed a comprehensive overhaul of the treasury income distribution mechanism. Founder Rune Christensen stated that with Genesis Capital’s transfer to Grove, Sky has officially ended its Genesis capitalization phase, and the previous irregular, governance-driven capital deployment has concluded.
The proposal simplifies the treasury management function (TMF) from a five-step waterfall structure to a four-step fixed allocation framework, covering security and maintenance, overall reserve capital, smart burn engine, and USDS staking rewards, while canceling several legacy mechanisms. This move comes at a time of rapid expansion for Sky, with USDS supply rising to approximately $11.6 billion, making it the third-largest stablecoin. Previously, the Sky community authorized the deployment of up to $2.5 billion through the stablecoin incubator Obex, and launched the native USDS on Avalanche in April.