Rune Christensen, the founder of Sky Protocol, published a proposal on the Sky governance forum on April 24 to consider permanently moving the protocol out of the bootstrap funding phase following the recent transfer of Genesis Capital to Grove, an institutional credit allocator in the Sky Agent Network.
Sky Protocol, which operated as MakerDAO for the first nine years of its existence, announced plans to simplify how its treasury distributes net revenues now that it has completed its founding-era capital deployment on its governance forum.
Genesis Capital was the mechanism Sky used to provide new agents with USDS, the Sky Protocol stablecoin, so they could start deploying capital.
The latest transfer sent roughly 20.8 million USDS to Grove, according to a thread posted by Sky’s official account on X on April 8. Grove’s total allocation was approximately USD 25 million, minus token generation fees of approximately USD 3.6 million and a token launch penalty of approximately USD 565,000.
What the proposal changes
Christensen’s proposal would collapse Sky’s Treasury Management Function (TMF) from the current five-step conditional waterfall to four steps. At this point, the protocol routes all net protocol revenue through a sequence that runs in the following order:
- Security and maintenance.
- Aggregated backstop capital.
- Reinforcement Conservator.
- Smart Burn Engine (which finances $HEAVEN buyback).
- Use rewards for $HEAVEN and USDS holders.
If Christensen has his way, Fortification Conserver will disappear from the series and their allocations will be distributed among the remaining categories at a flat rate.
The proposal will also eliminate several legacy mechanisms, including the Net Revenue Ratio, phase-based distinctions between Genesis and post-Genesis spending rules, activity-based staking reward levels and short-term trading provisions, the forum post said.
Under the current framework, at least 79% of all net revenues remain within the protocol at all times. That floor applies even if the allocation for security and maintenance is at the maximum of 21% of total net revenue in the Genesis phase, Christensen wrote.
After the Genesis phase ends, the board can only determine that allocation within a range of 4% to 10%.
How big has Sky Protocol become?
The founder’s treasury restructuring proposal arrives as Sky Protocol and its USDS stablecoin continue to gain ground in a DeFi scene that’s quite chaotic at the moment.
According to data from DeFiLlama Sky’s USDS offering has reached approximately $11 billion at the time of writing, claiming the spot of the third largest stablecoin by market capitalization.
The $HEAVEN sign is currently trading at $0.089, up more than 12% in the past week, with a market cap of around $2 billion.
Earlier in 2026, the Sky Protocol community authorized up to $2.5 billion for deployment through stablecoin incubator Obex, and in April the protocol launched native USDS on Avalanche via the SkyLink bridge.
In March, Sky Governance proposed approximately USD 70 million in Genesis Capital allocations for the remaining launch-stage agents, including USD 25 million each for Amatsu and Ozone, USD 10 million for Keel and USD 10.5 million for Launch Agent 6, according to an Atlas Edit proposal posted on the Sky Forum on March 15.
Grove, one of the network’s largest agents, announced on April 6 that it had exceeded a total value of $3 billion.