Sky (SKY)

I was thinking about these changes...

> almost no way to spin it nicely for $SKY holders now
> a hard but needed change to ensure some sustainability in the form of a solvency reserve
> despite token transparency framework which could be the norm, the solvency reserve should also be included in it

Basically how I see it → short-term pain, long-term gain.

So @SkyEcosystem cut token buybacks from 75% to 7.5%

‣ No regulator forced this
‣ No exploit triggered it

The protocol looked at $407M in annualized fees and decided to build a balance sheet instead of distributing it and that's the first DeFi protocol publicly choosing to be a bank instead of a token project.

Token holder net income collapsed from $20.60M to $1.16M in one quarter. The income statement tells the story clearly:

➥ Q1 2026 buybacks: $20.60M
➥ Q2 2026 so far: $1.16M

So where's the money going?

A $150M solvency reserve. Currently at $50.9M. At $5.7B in TVL that's roughly 0.9% coverage. Banks hold 4.5-7% minimum.

Sky isn't close to bank-grade yet but it's the first DeFi protocol to acknowledge that zero reserves isn't decentralization. It's a liability dressed up as capital efficiency.

If you hold $SKY and this frustrates you, I get it. You bought a governance token expecting buybacks to support the price. Instead the protocol is saving the money you thought was yours.

But the protocols th

So @SkyEcosystem cut token buybacks from 75% to 7.5%

‣ No regulator forced this
‣ No exploit triggered it

The protocol looked at $407M in annualized fees and decided to build a balance sheet instead of distributing it and that's the first DeFi protocol publicly choosing to be a bank instead of a token project.

Token holder net income collapsed from $20.60M to $1.16M in one quarter. The income statement tells the story clearly:

➥ Q1 2026 buybacks: $20.60M
➥ Q2 2026 so far: $1.16M

So where's the money going?

A $150M solvency reserve. Currently at $50.9M. At $5.7B in TVL that's roughly 0.9% coverage. Banks hold 4.5-7% minimum.

Sky isn't close to bank-grade yet but it's the first DeFi protocol to acknowledge that zero reserves isn't decentralization. It's a liability dressed up as capital efficiency.

If you hold $SKY and this frustrates you, I get it. You bought a governance token expecting buybacks to support the price. Instead the protocol is saving the money you thought was yours.

But the protocols th