Skale Network (SKL) explained
Imagine Ethereum Dapps running 1000x faster and without the gas fees — that’s the vision of Skale Network (SKL).
SKL wants to bring more scalability to the network and boost transaction capacity to bring convenience to those who need it. It’s a Layer 2 decentralized finance protocol, which uses a proof-of-stake model.
The concept of containerization is what probably makes Skale Network more scalable than most networks. It also allows highly configurable side chains, which after configured, will only require a monthly subscription fee in Skale tokens.
The market for it is active with a daily trading volume of $43.6 million, a good indication of its demand. The token SKL has a circulating supply of 3.47 billion coins on the backdrop of a $699.95 million market cap.
Let’s find out more about the Skale Network and its tokenomics.
What’s the Skale Network and who is it for?
SKALE Network is a layer 2 Ethereum sidechain network, which means it can operate independently and in parallel capacity to the Ethereum mainnet.
With such an infrastructure, it can reduce latency and allow for low-cost payments, which are some of the most discussed headaches of traders. It can run up to a maximum of 2,000 transactions per second per chain.
It provides developers with an environment to build their applications in a decentralized modular cloud with technical freedom and creativity. Being multi-chain, the network can support an unlimited number of chains that are specifically built for Web3 dapps.
As such, you can expect an easy to set up side-chain which can run full-state smart contracts.
Games such as CryptoCrusades and streaming services currently rely on the Skale Network to perform smoothly and seamlessly.
A pooled validation model allows the network to use the security of the abundance of validator nodes. This is done by combining random node assignments with frequent node rotation among the validator sets.
The SKL token and its main functions
SKL is the Skale Network’s utility token, which is an ERC-777 token that is backward compatible with ERC-20 platforms. It serves the following functions:
Holders and delegators can stake their tokens to help grow the network. Staking will allow for the validation of blocks and execution of smart contracts.
Developers can pay in SKL tokens for access to elastic blockchains (S-chains).
SKL is offered to validators and delegators as a reward for staking. Staking allows you to participate in the validation of blocks and growth of the network.
SKL is also used for on-chain voting. Users are provided voting power on the trajectory and future of the protocol by holding these governance tokens.
SKL has a maximum supply of 7 billion tokens. The majority of the allocation is on the validators’ rewards (33%) and delegator allocation (28.1%).
The team behind Skale Network
Skale Network is a project developed by the Network of Decentralized Economics (N.O.D.E) Foundation in partnership with California-based Skale Labs Inc. and various entities. The foundation owns 10% of the total pool of SKL tokens.
It was founded by entrepreneurs Jack O’Holleran and Stan Kladko. O’Holleran has 16 years of experience as a tech executive in Silicon Valley with 18 years of experience in cryptography. Meanwhile, Kladko brings with him a love for machine learning and AI along with an extensive background working in Silicon Valley.
The foundation will elect representatives who will help facilitate activities such as on-chain voting and decision-making on the network’s budget, among others. The representatives include a diversity of entities, including dapp developers, validators, and investors.
Where can I buy, sell, or trade SKL tokens?
SKL can be bought and traded on major exchanges, such as Binance, AAX, Coinbase, Gate.io, Huobi Global, KuCoin, UniSwap, FTX, Gemini, OKX, and Crypto.com. It is usually paired with USDT, USD, BTC, EUR, and GBP, among other cryptocurrencies.
What’s ahead for Skale Network?
Skale entered the first quarter of 2022 by earmarking a $100 million incentive program to advance blockchain technology gaming. To start with, Skale has allocated $5 million for developers who can meet the criteria for play-to-earn games.
The announcement came alongside the launch of Skale V2 or Skaleverse, which offers advanced gaming features, including speed of the game and chain-to-chain transfers.
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