Sky governance is facing controversy over an emergency proposal that changes MKR’s role within the ecosystem. Critics argue that the proposal eliminates a longstanding 5% exit fee on MKR withdrawals, significantly expands borrowing against MKR collateral, raises borrowing rates, and lowers liquidation thresholds, which increases the protocol’s risk of exposure. Concerns have been raised regarding the timing and lack of explanation behind these drastic changes, particularly as governance critics seemed to be silenced. Rune Christensen, Sky’s founder, defended the decision as necessary to avert a governance takeover and claimed the changes would reduce governance complexity. However, there are allegations suggesting that the modifications could consolidate control among certain investors. This situation has sparked intense debate within the community about the motives behind these governance maneuvers and the implications for protocol security and transparency. As discussions unfold, the key questions remain: Was this proposal truly for the protection of Sky’s future or a method to consolidate power within the governance framework?

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