What is the SKALE token and how does it work?
The SKALE Network token ($SKL), is a hybrid use token which represents the right to work in the network as a validator, stake as a delegator, or access a share of its resources by deploying and renting an Elastic Sidechain or Elastic Blockchain for a period of time as a developer.
The SKALE Network token serves as the built-in instrument of transfer for facilitating these four main functions:
1) Security of and staking in the network. SKL token holders (delegators) stake their SKL tokens to validators who run nodes that make the SKALE network function by validating blocks, executing smart contracts, and securing the network. They are rewarded with SKL tokens for their efforts.
2) Payment method for SKALE Chain subscription fees. Developers purchase their subscription access to elastic blockchains (S-chains) using SKL tokens.
3) Rewards for validators and delegators staking their tokens. Rewards are accumulated monthly, based on fees paid by developers for chains and a monthly inflation of tokens into the network.
4) Governance and voting. SKL tokens will be used for on-chain voting, which will control all economic parameters of the SKALE Network. Additional information surrounding governance and the N.O.D.E Anstalt can be found here.
ERC-777 to Support Delegation on Token Level
SKALE is built on an innovative ERC-777 token standard which supports delegation on the token level. ERC-777 is fully backward compatible with ERC-20, which means that it is supported by all participants of the Ethereum ecosystem with ERC-20 support.
One of the important functions of the SKL token in the SKALE Network is its ability to contribute to network security via delegation and staking. Unlike ERC-20, with ERC-777 a delegator no longer needs to send the token to the delegation smart contract but instead shares with the staking provider the secure delegation key while storing the tokens in the cold or hot wallet of their choice.
SKALE Token on ConsenSys Activate
The N.O.D.E. Foundation chose the ConsenSys Activate platform for the SKALE Network launch because of their approach to the legal and regulatory ambiguity around utility token offerings that decentralized projects face. Activate provided a token sale, staking, and delegation platform for fair and distributed token launches. Post sale, SKL token holders can use Activate’s easy token staking and delegation functions to earn network rewards. More information on token delegation can be found in the SKALE Delegator Hub.
Utilizing Activate’s more compliant KYC policy, the final number of approved participants in the SKL token sale was 4,533 with $53,300,000 in purchase intent, which was more than ten times the total token availability. On Friday, September 11, 2020, the public token sale of SKL, which powers the SKALE Network’s Ethereum scaling network, concluded. 3,736 people from 90 different countries purchased 167,139,884 SKL at $0.03 USD/SKL, creating a broad network of participants that spans the globe and significantly increases network security.
SKALE’s mainnet phase 2 went live October 1, with over $80 Million USD in Total Value Locked. A global cohort of roughly 4,000 people and entities from 90 different countries secured 135 SKALE Network nodes across 46 validator operators by staking their tokens.
SKALE Token Address
SKALE Token Unlock Schedule
Interactive Token Unlock Schedule
SKALE Token Resources
Tokenomics One Pager
Validator and Delegator Economics
Delegator Hub and FAQ
SKL Token image