Sky token rises 8% as protocol spends $75m on buybacks

The August buyback of SKY tokens brought the total expenditure of the Sky protocol on this program to $75 million since its launch at the end of February 2025. During this period, the market value of the token has grown by approximately 8%.

The Sky team reported that August buybacks amounted to US$5.5 million, for which 73 million SKY tokens were purchased. Sky's buyback program is one approach to tokenomics management: the protocol systematically removes tokens from circulation through regular market purchases financed by protocol revenues.

SKY traded at just over $0.063 when buybacks started on February 24 and now sits at about ~$0.07. The token reached a peak of $0.096 in late July before declining alongside broader market weakness. SKY hit its all-time high of just ~$0.1 in December 2024.

The protocol maintains detailed tracking of its buyback activities through public dashboards, providing transparency on monthly spending and token acquisition volumes. Dashboard data shows Sky spent $4.28 million on buybacks in February, with March recording the highest monthly spending at $18.31 million. The program purchases SKY tokens from the market to reduce circulating supply.

During the same six-month period, other DeFi tokens showed mixed performance. Uniswap's UNI gained about 6% while Aave's AAVE rose 25.8%.

Sky completed its rebrand from Maker in August 2024 as part of the Endgame overhaul. The rebrand introduced the SKY governance token and USDS stablecoin, while MKR and DAI continue operating as «legacy» tokens. Users can voluntarily convert MKR to SKY and DAI to USDS.

Sky protocol spent 5.5M USDS for SKY buybacks in August