SKALE token to launch on ConsenSys’ Codefi Activate
The SKALE Network’s SKALE token (SKL) will be available for purchase through a three-day Dutch auction on ConsensSys Codefi's Activate platform on 17 August, 2020 at 12:00PM EST.
The SKALE token supports the SKALE Network, an open source elastic blockchain network designed specifically for scaling ethereum by increasing transaction speeds, lowering transaction costs, and creating seamless workflows for end users and developers building applications on ethereum. The SKALE Network’s mainnet has been live since 30 June. Each application using the SKALE Network gets its own chain for executing transactions at sub-second block times, with over 2,000 transactions-per-second.
In addition to running full-state smart contracts, SKALE chains offer decentralised storage and can execute machine learning in smart contracts. Over 40 decentralised applications are currently building on SKALE, ranging from games to decentralised finance, to streaming audio and more. The combination of SKALE and ethereum is a truly decentralised cloud that allows Web 3 applications to compete with Web 2 on both a cost and performance basis.
“There has been fantastic growth in decentralised applications and DeFi being built on ethereum. ConsenSys Codefi is designed to enable the builders of our ecosystem with modular tools for commerce and finance, including the applied use of tokens. SKALE is a major step forward for the operating progress of the ethereum economy, and we are thrilled to support the team,” says Lex Sokolin, Global Co-Head of ConsenSys Codefi. “Our goal has been to build a vertically integrated platform that enables a robust network launch and on-going use — where people can purchase and put their tokens to work as they’re intended. On Activate, after users purchase SKL tokens, they can start contributing to the security and scalability of the network through staking, starting from genesis,” says Collin Myers, Token Strategy Lead at ConsenSys Codefi. Users may be eligible to earn rewards through this activity.
Not only can users buy SKL tokens directly from SKALE Network on the Activate platform, but SKL token holders can stake SKL tokens in accordance with the SKALE Network’s protocol, and receive staking rewards directly from the network in return, without having to leave the application. Activate’s network dashboard makes it easy for users to decide which staking-as-a-service provider to choose to delegate their SKL tokens on the network. The SKL token is a hybrid-use token that participates in the network security mechanism, and is used as a means of payment for SKALE chains.
Activate uses the “Proof of Use” distribution mechanism designed to get tokens to holders whose primary purpose is utilising network tokens for their intended purpose. Proof of Use programmatically requires users who acquire tokens during a launch to actively “prove use” of their tokens on the network’s mainnet in specific use cases before they’re allowed to transfer or redeem them. In the case of SKALE, participants will be required by the protocol to delegate at least 50 per cent of their purchased tokens for 90 days before being able to transfer them outside the network. This creates a measurable incentive mechanism aimed at minimising speculative behaviour from participants, while maximising active contribution to the network. Proof of Use aligns with Codefi Activate’s Token Launch Standards which establish fair, accountable, and transparent practices.