Womp womp. Negative $6.3m in the Sky Surplus Buffer. More of a Deficit Buffer, amirite? This is where we now can say with certainty that SPK (and any other Star gov tokens, if they existed yet) holds no ownership rights over this $32.1m. If they did, you’d have to deduct minority ownership. To avoid flirting with insolvency at the Sky level, all of these Stars must be subsidiaries and not independent entities. Accounting treatment will hold important signals from here on. There’s not at present a way for Sky to be solvent and SPK to have ownership rights over the treasury, unless there are some stray assets that could be sold or a capital infusion comes from somewhere. This accounting characterization is a legitimate choice, but indicates unambiguously that SPK tokenholders don’t own the $32.1m Sky is claiming as their own. Bad for SPK, good for SKY, good for system-wide solvency. But it’s a real tension - both can’t simultaneously claim to own the $32.1m. That would be a fiction. The cleanest path for Spark would probably be to get Sky to acknowledge Spark’s ownership of some of the cash in exchange for Spark to offer an explicit, formal guarantee of Sky core or other Stars’ debts. Of course, that’s likely to be unappealing to Sky for two reasons: giving away money + Spark’s guarantee wouldn’t suddenly make Sky’s assets = liabilities, which invites bad PR for a stablecoin issuer. However, if I was a Star, I would watch this very closely. At present, Stars look more and more like Morpho or Euler curators, except with their deposit base concentrated in just one entity (Sky).

Forgot to post the screenshot