Sky's new proposal plans to reduce buybacks by 87.5% for 3 months. The saved funds will primarily go into the Surplus Buffer (protocol safety buffer).

The reasons are roughly two-fold:

1. USDS issuance volume is increasing, but the safety buffer funds are insufficient, with official disclosure showing only around 50m, less than 1% of issuance volume;

2. As the founder stated, macro defense—concerned that geopolitical conflicts could cause collateral volatility and result in bad debts.

The proposal is relatively neutral, neither bullish nor bearish.