# Sky plans a 5% MKR migration penalty in the September 10 spell

> The proposed conversion penalty increases from 4% to 5%.

- URL: https://riadefi.com/on-chain/2026-09-04-sky-mkr-migration-penalty-five-percent/
- Type: Economic change
- Stage: Proposed
- Evidence: confirmed
- Materiality: watch
- Event date: 2026-09-04
- Version: 1, published 2026-09-15 (first published 2026-09-15)
- Follow-up: 2026-09-11
- Advisor-relevant: no
- Affects: Sky (protocol)

## What happened

Sky announced its intention to include the next quarterly MKR-to-SKY penalty increase in an executive spell.

## What changed

The proposed conversion penalty increases from 4% to 5%.

## What did not change

The proposal does not change USDS or sUSDS redemption terms and does not establish a live penalty increase.

## Confirmed

- The notice targets the September 10 spell.
- The increase is explicitly conditional on passage.

## Still open

- Passage, execution, and the effective conversion-contract parameter.

## What it means for an advisor

- Track the conversion-cost change in Sky diligence notes while preserving the distinction between governance-token migration and savings exposure.

## Sources

1. [Delayed Migration Penalty Update - September 10th Spell](https://forum.skyeco.com/t/delayed-migration-penalty-update-september-10th-spell/28218) · Sky Core governance · 2026-09-04


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.