SKALE Crash Course
Let me introduce you to SKALE. SKALE is an elastic blockchain network that gives developers the ability to easily provision highly configurable fully decentralized chains that are instantly compatible with Ethereum. SKALE uses the $SKL token, 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. SKALE chains can execute sub-second block times, run over 2,000 tps on every chain, and run full-state smart contracts in addition to decentralized storage, and machine learning in EVM. With offices in San Francisco, CA and Kharkiv, Ukraine, SKALE early supporters include top blockchain VCs such as Arrington XRP Capital, Blockchange, ConsenSys Labs, Hashed, HashKey, Floodgate, Multicoin Capital, Recruit Holdings, and Winklevoss Capital. The SKALE Network is supported by over 46 validators orgs globally including Blockware, ConsenSys, Certus.One, Chorus One, Dokia, Figment Networks, Hashed, Staked, StakewithUs, and Stake X, as well as key infrastructure player Bison Trails.
Total Supply will be 4.2B tokens with 596M in circulation.
This is made up of:
Liquid Tokens: 221,250,000
- 125,000,000 from the Activate Sale which makes up 3.03% of Total Supply.
- 96,250,000 derive from protocol inflation over the Proof of Use Period (32,083,333/month).
- Please note that all token holders regardless of lock status can stake. Activate Sale Participants, Foundation, Early Supporters, and Core Team have the ability and will be staking during this time period. Estimates are that stake rate will be around 45–65% based on early data.
Unlocked Foundation Owned Tokens: 375,000,000
- 85,000,000 for the Protocol Development Fund.
- Only a small fraction of this pool will be used to grant dApps accepted into the SKALE Innovator Program tokens for 3–6 month starter grants to fund initial use of their SKALE Chains. AWS, Google, Microsoft and other cloud providers have similar credit programs to help devs get started. When these are granted they go directly into the protocol and are paid out to delegators and validators as part of the monthly bounty pool.
- 150,000,000 in the SKALE Foundation allocation. These tokens are not planned to be used in this period. Their sole purpose is to support the community. They are liquid to support any operations needed. At this point there is no plan for their use but they are ready to support unforeseen operational requirements.
- 140,000,000 are in the Ecosystem fund. The purpose of this fund is to support community requirements for ecosystem growth such as exchange listings, paying vendors for the public token launch, validator staking support programs, etc.
The lock-up schedules and prices are pasted below. Reasoning for such strong lockups are detailed in this article
Metrics That Matter for Token Launches
At this point, you've probably heard about our partnership with ConsenSys Activate, which I'm incredibly excited about…
we got over the economy and what about Validator & Delegator
Validator & Delegator Token Economics
SKALE Token (SKL) Utility and Value for Economics
The SKALE token, with a token symbol “SKL”, serves as the built-in instrument of transfer for facilitating three core organic functions:
- Security/Staking: Delegators stake SKL tokens to validators who run the SKALE network through operating nodes by validating blocks, executing smart contracts, and securing the network. Both delegators and validators are rewarded with SKL tokens for their efforts and collateralization.
- SKALE Chain Subscription Fees: Developers purchase their subscription access to elastic blockchains (S-chains) with SKL tokens.
- Governance voting: The SKL token will also be used for on-chain voting, which will control all economic parameters of the SKALE Network. The network will gradually evolve to a point where voting is required to change the core economic functions of the network such as issuance and fees. In general, SKALE governance follows a Delegated Stake Model. A stakeholder can either participate in governance directly by voting with its stake or delegate the voting power to other stakeholders. The default voting model used by SKALE is a simple majority vote of stakes that participate in the vote. Additional information surrounding governance and the N.O.D.E Foundation can be found here
A delegator is a separate individual/entity who enters an agreement with a validator to provide a portion of the total staking amount (collateral) needed for a node to run in return for an agreed-upon percentage of proceeds earned from validating. Delegators are at times interchangeable with validators throughout the document when referring to earned rewards
The SKALE Network is a Proof-of-Stake (PoS) network secured by independent global validators. SKALE validators operate and secure the network by proposing blocks, establishing consensus on a finalized block, and committing it to a chain. Without validators, who bring the ‘blocks’ and ‘chain’ to ‘blockchain’, (or miners in PoW systems), there wouldn’t be a working blockchain (or network). It is mission-critical for the network economics to reward and incentivize validators for their upfront hardware investments, operational upkeep efforts, and overall support of network performance and security.
SKALE validators earn SKL rewards every epoch (i.e. every calendar month) through:
I. Decentralized App (dApp) Fees
II. Network Issuance (or Token Inflation)
I. Decentralized App ( dApp) Fees
Developers rent S-chains for their dApps by depositing SKL tokens into a smart contract. This allows the SKALE Network to offer gas-less transactions to the dApp’s end users, dramatically improving the Web3 experience.
At the end of each epoch period, a portion of these SKL tokens that were deposited by the dApp developers gets allocated to a bounty pool. This in turn gets distributed to the validators as rewards if they reach certain SLA requirements (defined below).
As the network continues to grow and Web3 applications continue to proliferate on the SKALE Network, the total dApp fees look to surpass token inflation on a per node basis and will be the primary driver of token returns. The inherent value of the network will then reflect the usage and growth of the network.
in more detail in this article below
SKALE Validator & Delegator Token Economics
Disclaimer: None of this is financial advice. Everything provided below is meant to be educational and does not…
A “little” technical part
It will be a little difficult, but incredibly interesting
SKALE is a network of Elastic Sidechains run by independent validators located around the world. Validators run “Nodes”, which contain a number “Virtualized Subnodes”, and can participate in multiple sidechains.
One SKALE Validator can run multiple Elastic Sidechains simultaneously, whereby the number of validators and capacity of each Elastic Sidechain is configurable by users of the system. Elastic Sidechains are created and managed through the SKALE Manager located on the Ethereum blockchain. This SKALE Manager is a series of smart contracts responsible for:
- The registration of validators with the SKALE Network
- The orchestration and creation of Elastic Sidechains
- The performance measuring of virtualized subnodes in the network
Developers can interact with the SKALE Manager directly or through the Developer Portal provided by SKALE. To create an Elastic Sidechain, users can rent space on SKALE nodes by depositing SKALE tokens into the SKALE Manager either directly or through the Developer Portal.
When creating an Elastic Sidechain, we leverage a source of randomness (hash of the block number on the testnet, Verifiable Delay Function (VDF) on the mainnet) for the selecting of a committee of participating virtualized subnodes. This, combined with a randomized shuffling mechanism for moving nodes between various Elastic Sidechains, thwarts any attempts by nodes to collude with one another.
Each Elastic Sidechain ships with a Byzantine Fault Tolerant (BFT) consensus which can tolerate < ⅓ nodes acting malevolently or going offline. In the case where > ⅓ nodes are malicious or go offline, the Elastic Sidechain will halt. Once there are < ⅓ offline due to nodes coming back online or new resources being reallocated to serve the chain, consensus resumes. For more on our consensus, check out this article!
The main star of our architecture, though, are the virtualized subnodes which ship with each and every node!
SKALE Virtualized Subnodes
Each Elastic Sidechain is comprised of a collective of randomly appointed virtualized subnodes which run the SKALE daemon and run SKALE consensus. Unlike other protocols, virtualized subnodes are not restricted to a one-to-one mapping between participating nodes in the network. This is made possible through the containerized virtualized subnode architecture deployed on each node in the SKALE Network which allows each node to run multiple Elastic Sidechains simultaneously.
Subnodes within a SKALE Node are referred to as Virtualized SubNodes. Each Virtualized Subnode participates in independent Elastic Sidechains. Below is a diagram of a container running on a SKALE virtualized subnode.
This containerized architecture was selected as a means to bring enterprise grade performance and optionality to decentralized application developers on par with centralized systems, which offer elasticity, configurability, and modularity. Containers are divided into five main components that ship with a dockerized Linux OS — allowing for each node to be hosted in a OS-agnostic manner. Each container is encapsulated within one of the following services.
SKALE Admin Service
The SKALE Admin Service serves as the human-facing interface for virtualized subnodes with the SKALE Manager (located on the Ethereum Mainnet). Functionality shipping with this interface includes the ability for nodes to see which Elastic Sidechains they are participating in as well as the ability to deposit, withdraw, stake, and claim SKALE tokens. Because virtualized subnodes within nodes are appointed randomly to participate in Elastic Sidechains, there is no interface for being able to join / leave Elastic Sidechains within the network.
Node Monitoring Service
The NMS (Node Monitoring Service) is run on each SKALE Node and facilitates the performance tracking of each of that node’s peer nodes. Performance tracking is measured in both uptime and latency through a regular process which pings each peer node and logs these measurements to a local database. At the end of each Elastic Sidechain epoch, these metrics will be averaged and submitted to the SKALE Manager which will use them to determine the payout to each node.
Virtualized Subnode Orchestration Service
The VSOS (Virtualized Subnode Orchestration Service) orchestrates node computation and storage resources to instantiate virtualized subnodes using a dynamically created virtualized subnode image consisting of the SKALE daemon (skaled), the catchup agent for syncing an Elastic Sidechain, and the transfer agent for interchain messaging. This service also performs respawning of failed virtualized subnodes as well as deallocation of resources to virtualized subnodes who have been decommissioned.
The Future with SKALE
It is this belief that one size does not fit all that has led us to develop SKALE, a highly modular and configurable execution layer scaling solution. Initially, we are focused on providing scalability for Ethereum-based decentralized applications with our SKALE Parallel Asynchronous Consensus (SPAC), which is based on the parallelization of a variant of Asynchronous Byzantine Binary Agreement.
And while we build alongside businesses in our SKALE Innovation Program, we are continuously dreaming up bigger and bigger plans for the future! At some point, SKALE will be integrating plug and play consensus mechanisms, interchain messaging, and a number of other requested features.
Learn More about SKALE: