Sky Protocol Executes $96M+ Buyback, Repurchases 29.3M–32.3M SKY to Tighten Supply
Sky Protocol has continued its ongoing market buyback program, completing a seven-day repurchase that acquired roughly 29.3 million SKY for about 1.9 million USDS. Earlier reporting noted a 32.3 million SKY figure for the same period; the discrepancy reflects timing and reporting updates. The program began in February 2025 following the protocol’s late-2024 rebrand from MakerDAO to Sky Protocol and has now deployed more than $96–$94+ million USDS in cumulative purchases from the open market. The stated aims are to manage circulating supply, support market valuation, and apply treasury discipline consistent with corporate-style DeFi treasury management. Repurchase funds likely originate from protocol revenue—mainly stability fees from inherited lending markets—but announcements have not specified whether tokens will be burned or retained in treasury. Traders should monitor official Sky Protocol disclosures for (1) confirmed weekly repurchase amounts and cadence, (2) whether repurchased SKY are burned or held, and (3) treasury funding sources and sustainability. Continued, revenue-backed buybacks that lead to token burns would tighten supply and can be bullish for SKY; however, the magnitude of price impact depends on buyback scale, frequency, and transparency.
Bullish
Buybacks reduce available circulating supply and signal active treasury management. The program is substantial — cumulative deployment exceeds $94–$96 million — and appears funded by protocol revenue (stability fees), which increases credibility compared with one-off treasury interventions. If repurchases are sustained and especially if tokens are burned, the net supply contraction is likely to apply upward pressure on SKY over the medium to long term. Short-term effects are mixed: weekly buybacks can create bursts of demand and reduce sell-side liquidity, increasing volatility and potentially producing short-term price spikes. However, absent clear burns or guaranteed cadence, market participants may discount the move if buybacks are intermittent or funded by one-time sources. Transparency on burn policy and ongoing revenue funding will determine durability of the bullish case.