Sky Completes First SKY Token Burn Using Protocol Revenue

Sky has completed its first token burn using protocol revenue, permanently removing 2.86 million SKY tokens from circulation.

On April 14 (local time), Sky announced via X (formerly Twitter) that it had purchased and permanently burned 2.86 million SKY tokens in the market using 5% of its monthly net protocol surplus.

This burn is part of Sky's ongoing 'Stage 2' capital allocation system, under which 50% of monthly net protocol surplus is allocated for SKY and USDS rewards and token purchases. Specifically, 22.5% goes toward purchasing SKY for staking rewards, another 22.5% for USDS staking rewards, and the remaining 5% is used to buy SKY on the market for burning.

Sky stated that this first burn marks the beginning of a structure connecting protocol financial performance with reduced SKY supply.