SKALE

FAQ's

What is the SKALE Network?

The SKALE network is an Ethereum-native, modular blockchain network composed of high-throughput, low-latency blockchains. The network has zero end-user gas fees and supports an unlimited number of independent blockchains that are highly configurable and both interoperable and built in an integrated manner with Ethereum.

What is the SKALE token and how does it work?

The SKALE token ($SKL), is a hybrid use token that represents the right to work in the network as a validator, stake as a delegator, or access a share of its resources as a developer by deploying and renting a SKALE chain for a set period. 

Validators stake SKL into the network and then gain the right to run nodes and earn both fees and tokens via inflation. Delegators may delegate their tokens to validators and earn rewards.

What is the function of the SKL Token?
SKALE Network is powered by its native SKL utility token that powers the SKALE economy. SKALE is a POS network that leverages the SKL token for security, renting SKALE chains, and for governance. The 3 main functions are:
• Staking: Token holders can stake their SKL tokens to collateralize the network and provide security. In return for bolstering network security, holders receive SKL tokens, made up from inflation and dApp payments 
• Payments: Developers will need SKL tokens to pay for subscription access for the rights to their own SKALE chain and associated resources.
• Governance: SKALE is a decentralized network in which holders will receive voting power through their tokens. For example, token holders will be able to vote to adjust economic parameters such as the pricing for subscription fees.
How was SKALE Launched?
SKALE Network was launched in three phases.
• Phase 1: June 30, 2020 was a restricted Mainnet that did not have any bounty, transfers, or issuance active in the Network. This phase supported the initial strengthening and security of the network, which was further hardened and decentralized throughout Phase 2. The network was restricted to validators who had run in the TestNet and had gone through an onboarding process.
• Phase 2: September, 2020 launched following the ConsenSys Activate Launch. A public allocation of tokens was distributed via the Activate platform. All early supporters and public launch participants received their respective token allocation at the same time during Phase 2, following the conclusion of the Activate launch. Genesis epoch began October 1, 2020 the network ran in a delegated state with no token liquidity, but issuance and bounty was live and distributed to token holders that were staking and securing the network.
• Phase 3: December 1, 2020 after the 60 Day Proof of Use Period the network changed into an open state where tokens that finished Proof of Use were unlocked and could be transferred and exchanged. The only unlocked tokens at this phase were tokens purchased in the Activate launch and tokens earned by staking or validating during the Proof of Use Period. All team and early supporter tokens are locked for a period of 6-48 months following the Phase 2 launch conducted on Activate. The token was launched on several exchanges including Binance, Huobi, Crypto.com and Uniswap.
How to stake SKL?

Staking your SKL is the best way you can help secure the network, and earn rewards for doing so!

 

Where to Stake:

– Activate Codefi by ConsenSys

– Binance Staking

– MEW 

– Unagii

– OKX

– Etherscan

 

How to Stake:

– Activate Codefi Staking Guide

– Binance Staking Blog

– MEW Staking Blog

– Unagii Staking Blog

– OKX Staking Blog

Is there a minimum delegation/staking period?

Yes, there is currently a minimum delegation/staking period of 2 months.

How much can I earn staking SKL?

If a SKL token holder decides to delegate SKL tokens with a validator, the delegator will receive token rewards based on the number of tokens they delegated, the commission percentage set by the validator, and the amount of time they stake for. 

To estimate your Staking Rewards check out the Staking Rewards Calculator

What are the risks of staking SKL?

Currently, there is no risk as the main penalty for validators is bounty reduction if a validator fails to stay in compliance with minimum requirements. In future network phases, the stake will be slashed if a validator exhibits malicious behavior.