A Sky contributor proposed halving the Step 2 backstop allocation on October 28.

What happened

Sky contributor misher proposed reducing the Step 2 allocation to Aggregate Backstop Capital from 50% to 25% on October 28, 2026.

What changed

The contributor proposed directing more capital to USDS staking rewards, SKY staker buybacks and token burning.

What did not change

The contributor submitted a discussion proposal. The cited discussion establishes no governance approval or executed distribution.

Confirmed

• The contributor illustrated retained capital falling from 5,854,378.80 USDS to 2,927,189.40 USDS.
• The contributor illustrated USDS staking rewards rising from 2,634,470.46 USDS to 3,951,705.69 USDS.
• The contributor proposed extending the stated backstop funding period from 1 year to 2 years.

Still open

• Sky governance has yet to establish whether it will consider or approve these changes.
• The contributor’s projected staking yields and backstop funding periods require independent confirmation.

What it means for an advisor

• Ketju should track governance action before revising the Sky memo’s explanation of backstop accumulation and USDS rewards.
• Advisors should treat the contributor’s projected rewards as proposed economics.