Sky’s Aggressive Buyback Highlights Crypto’s Creative Edge Amid Regulatory Challenges

Sky Protocol, previously known as MakerDAO, has made major adjustments to its incentive mechanisms, raising its daily buyback limit to 300,000 USDS and changing staking rewards from SKY→USDS to SKY→SKY. These updates, which were ratified through a governance vote, became effective at 22:37东八区 on November 3. Participants who stake will need to manually transition their holdings to the updated system, which is designed to simplify tokenomics and boost staking rewards, as reported by

. In addition, the protocol will allocate 500 million SKY to its treasury to fund future reward distributions, according to .

This initiative is part of a wider movement among decentralized platforms to strengthen token value through robust buyback strategies. This trend coincides with October’s all-time high decentralized exchange (DEX) trading volume of $613.3 billion, fueled by liquidity mining and airdrop participation, according to

. Centralized exchanges also experienced growth, with Binance topping the list at $810.4 billion in monthly trades. Experts link this uptick to heightened market volatility after Bitcoin’s price fell by 10% in late October, leading traders to adjust their portfolios, as highlighted in the TradingView report.

On the regulatory front, the crypto industry continues to face political friction. Former President Donald Trump justified his 2025 pardon of Binance founder Changpeng Zhao (CZ) as a response to what he termed a "Biden witch hunt," despite controversy surrounding Binance’s $2 billion investment in Trump-affiliated projects, according to

. The pardon, which ignited discussions about regulatory boundaries, coincided with a 15% jump in investments in U.S. crypto companies, as reported by the Blockchain Association. Detractors, including Senator Elizabeth Warren, have urged for tighter regulations to avoid conflicts of interest, the Coinotag report noted.

The ongoing interaction between regulatory developments and market dynamics highlights the sector’s intricacy. While Sky’s expanded buybacks and DEX milestones point to growing institutional trust, political actions such as Trump’s pardon reveal persistent uncertainties. As the U.S. seeks to lead the global crypto landscape, finding the right balance between fostering innovation and ensuring accountability will remain a central issue for both regulators and investors.