Sky proposes activating its full Treasury Management Function waterfall

What happened

BA Labs stated that the transition condition for Sky's full Treasury Management Function had been met and recommended August 13 spell parameters implementing the revenue-allocation waterfall.

What changed

If executed, July net revenue would fund security and maintenance, retain capital for Sky reserves, and split remaining capital among USDS staking rewards, SKY buybacks distributed to stakers, and buyback-and-burn treatment.

What did not change

The record confirms recommendation and Core Facilitator acceptance for inclusion but does not prove executive-vote approval or spell execution. It does not change the sUSDS redemption mechanism or directly state a new Sky Savings Rate.

Confirmed

• July net revenue was calculated at 10,517,426 USDS.
• Aggregate Backstop Capital was reported below its 150 million USDS Turbo-Fill Floor, producing a 50% Step 2 retention rate.
• The proposed Step 3 allocation is 45% USDS staking rewards, 45% buybacks distributed as SKY rewards, and 10% buyback-and-burn treatment.
• The proposed splitter hop and rewards duration are both 3,748 seconds.
• The Core Facilitator confirmed the values for inclusion in the next executive vote.

Still open

• The executive-vote outcome and execution transaction.
• The resulting live splitter, vesting, and rewards parameters.
• Whether the reported reserve and revenue inputs were independently reconciled on-chain.
• The effect of the new waterfall on future sUSDS subsidy and reserve coverage.

What it means for an advisor

• Review Sky's reserve, subsidy, and cash-allocation assumptions if the configuration executes.
• Verify live parameters and subsequent reserve coverage before updating the memo's economic-control description.
• Do not present proposed SKY or USDS staking distributions as current until execution is verified.