One year after its transition into Sky, the adoption of the modular governance protocol remains mixed despite having established core pillars of its transformation. With over $7.8 billion in liabilities across DAI and its successor, the protocol's stablecoin metrics have stagnated or declined. Efforts to restructure capital and migrate tokens have reshaped governance. Sky co-founder Rune Christensen highlighted discrepancies in financial performance measures, illustrating a $300 million run-rate against an $8 million Q2 profit. Critics have questioned management effectiveness amid high expenses. The demand for DAI has increased despite Sky’s USDS not achieving significant market share. The supply of both USDS and DAI was flat at the end of Q2 2025, though recent trends show DAI's resurgence. Additionally, Sky shifted from merely offering a stablecoin to supporting capital formation through new financial instruments. The conversion from MKR to SKY is nearing completion, enhancing governance authority. Though the market has not yet responded positively, Christensen remains optimistic about Sky's future economic growth and governance reforms aimed at institutional engagement.

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