Sky Aggressive Deflation: Reduces SPK Net Emissions by 40% in One Move, Saving $23 Million Annually in Emissions

Sky has officially removed the SPK rewards for staking SKY tokens. This adjustment will directly reduce SPK emissions by 30%. Combined with the proposed update to Spark’s buyback parameters, these two measures are expected to collectively reduce net SPK emissions by 40%. Based on current net income and SPK price, this equates to a reduction of approximately $23 million in emissions over the next 12 months. This represents a proactive optimization of the Sky project’s tokenomics.

Details of the Dual Deflationary Measures

Sky’s adjustment includes two key actions:

• Removal of staking rewards: Ceasing to distribute SPK tokens to users staking SKY, directly cutting off this emission channel
• Update of buyback parameters: Adjusting Spark’s buyback mechanism parameters to further compress SPK supply

These two measures create a compounding effect. Individually, removing staking rewards reduces emissions by 30%; combined with the buyback parameter adjustment, the overall net emission reduction expands to 40%.

Why This Matters

Direct Relief from Emission Pressure

A $23 million annual emission reduction sounds significant. For Sky, with a market cap of $152 million, this means a substantial decrease in the pressure of new supply each year. In the crypto market, emission pressure is often a key factor suppressing token prices, especially during bearish market conditions.

Signal of Project Team’s Attitude

This adjustment indicates that Sky’s team is seriously committed to optimizing tokenomics. Instead of passively letting the market absorb high emissions, they are proactively taking measures to control supply. Such initiative is generally viewed positively by the market.

Market Benchmark: Not Just Sky Doing This

It’s worth noting that Sky is not acting in isolation. According to recent news, the blockchain game Axie Infinity’s developer Sky Mavis is also launching a radical tokenomics reform in early 2026, including halting SLP emissions and introducing bonded tokens like bAXS. These similar actions across projects are forming a trend: more projects are recognizing that optimizing token economics to control inflation is a key method to enhance token value.

Current Market Response

From available information, Sky has performed well recently. It has increased by 1.67% in the past 24 hours and by 10.39% over the past 7 days. Amid the overall downturn in the crypto market (BTC falling below $90,000, ETH below $3,000), Sky’s RWA sector has remained relatively resilient, rising 2.35% in 24 hours. This may reflect ongoing market interest in projects like Sky.

Summary

Sky has achieved a 40% reduction in net SPK emissions and a $23 million decrease in annual emission pressure through removing staking rewards and optimizing buyback parameters. This is not only a technical adjustment to tokenomics but also a proactive effort by the project team to optimize supply structure and enhance token value. In the context of the increasing emphasis on deflationary mechanisms across the crypto industry, Sky’s actions are quite representative. The key going forward will be whether these measures can generate sustained positive market expectations.