Sky Proposes Simplification of Treasury Management, Shifting from Governance-Driven to Rule-Based Expenditure

Sky has proposed a comprehensive reform of the treasury revenue distribution mechanism. Founder Rune Christensen stated that with Genesis Capital’s transition to Grove, Sky has officially concluded its initial capital phase, ending the previously irregular capital deployments determined by governance. The proposal simplifies the treasury management function (TMF) from a five-step conditional waterfall structure to a four-step fixed allocation framework, covering security and maintenance, overall backup capital, a smart burn engine, and USDS staking rewards, while eliminating several legacy mechanisms. This move comes as Sky is rapidly expanding, with the supply of USDS 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.