01 - Melt butter in a large skillet over medium heat. Add diced onions, salt, pepper, and sugar. Cook, stirring frequently, until onions are golden brown and caramelized, about 20-25 minutes. Allow to cool to room temperature.
02 - In a medium mixing bowl, combine sour cream, mayonnaise, garlic powder, onion powder, and chopped chives. Stir until fully incorporated.
03 - Fold the cooled caramelized onions into the cream mixture. Mix until well combined. Taste and adjust seasoning if necessary. Refrigerate for at least 30 minutes to allow flavors to meld.
04 - Transfer dip to a serving bowl, garnish with additional fresh chives, and serve alongside potato chips.