Deep Dive
1. Continued Coexistence with USDS (Ongoing)
Overview: Following MakerDAO's rebrand to Sky Protocol, the new stablecoin USDS was introduced. DAI continues to function as the legacy stablecoin and is interchangeable with USDS at a 1:1 ratio through a converter contract (CoinJar). There is no official indication that DAI will be imminently phased out, allowing both to coexist in the ecosystem.
What this means: This is neutral for DAI because it ensures continuity and minimizes disruption for existing users and integrations. However, it suggests development focus may shift toward USDS, potentially limiting new features for DAI.
2. Governance Evolution via Sky Protocol (2026–2027)
Overview: Sky Protocol's long-term "Endgame" roadmap, noted in a late 2025 report, includes a two-year plan to evolve governance (Blockworks). Key initiatives involve establishing a "Core Council" and implementing staking reforms with lock-up periods and protections against liquid staking token (LST) dominance. This governance overhaul shapes the environment in which DAI operates.
What this means: This is bullish for the broader Sky ecosystem, which includes DAI, as it aims to create a more scalable and resilient decentralized finance framework. Successful governance could enhance the overall protocol's stability and attractiveness.
3. Potential Gradual Migration to USDS (Timeline Uncertain)
Overview: The upgrade from DAI to USDS is optional and user-initiated. A penalty fee for late conversion of the related governance token (MKR to SKY) was set to begin in September 2025, suggesting a gradual migration incentive (CoinJar). However, a definitive timeline or deadline for DAI's migration has not been specified in the available data.
What this means: This is bearish for DAI's long-term prominence as it signals a strategic pivot to USDS. The uncertainty creates a holding pattern where DAI's utility may gradually diminish if network effects and development resources consolidate around USDS.
Conclusion
DAI's immediate roadmap is defined by its role in a transitional ecosystem, coexisting with USDS while broader governance reforms unfold under Sky Protocol. The key question for holders is whether to maintain DAI for its proven stability or migrate to USDS to access future ecosystem developments. How will the balance between these two stablecoins shift as Sky's Endgame plan progresses?