MKR to SKY Upgrade Penalty Set to Jump to Five Percent

The conversion contract for MKR to SKY is about to undergo its fifth upgrade penalty. Currently, it withholds four percent of the converted amount, but this will increase to five percent in the coming days.

Our analysis shows that the next step in the penalty is due within a narrow window between August 31 and September 5, 2026. This contradicts current reporting which suggests that the fifth step would fall on September 18, 2026, based on the protocol's documentation.

The conversion contract calculates differently after each upgrade, without any warning or announcement to wallet holders. The mechanism works by withholding a percentage of the converted amount before transferring the SKY to users.