What is the token economics model of SKALE (SKL) currency?

The SKALE network utilizes its native SKL token for staking, network fees, governance, ecosystem support, and liquidity pool rewards to drive its operation and growth.

Dec 12, 2024 at 07:45 pm

What is the Token Economics Model of SKALE (SKL) Currency?

Introduction:

SKALE (SKL) is a decentralized network that enables the deployment and execution of smart contracts on Ethereum. It utilizes an off-chain scaling solution to address scalability limitations on the Ethereum blockchain. The SKL token plays a crucial role in the operation and governance of the SKALE network.

Token Economics Model:

1. Token Supply and Distribution:

• Total Supply: 10,000,000,000 SKL

• Initial Distribution:

  • 66.6% - Ecosystem Development Fund
  • 16.6% - Team and Advisors
  • 8.3% - Seed and Private Sale
  • 8.3% - Public Sale

2. Token Allocation:

• Staking Rewards: 50%
• Network Operations and Maintenance: 20%
• Ecosystem Support: 15%
• Team and Advisors: 10%
• Liquidity Pool Rewards: 5%

3. Token Usage:

• Staking: SKL tokens can be staked to support the network and earn rewards. Stakers help secure the network and participate in consensus.
• Network Fees: SKL is used to pay gas fees for smart contract executions on the SKALE network.
• Governance: SKL holders have voting rights to participate in network upgrades, protocol changes, and other governance decisions.

4. Staking Rewards:

• Stakers earn rewards based on the amount of SKL tokens staked, the duration of staking, and their participation in consensus.
• Rewards are distributed in SKL tokens, and the annual inflation rate for rewards is 20%.
• SKL holders can stake their tokens through staking pools or directly on the SKALE network.

5. Network Operations and Maintenance:

• 20% of the SKL token supply is allocated to fund network operations and maintenance.
• These funds are used to support development, infrastructure, and operations of the SKALE network.
• The allocations are managed by the SKALE Foundation, a non-profit organization responsible for overseeing the network.

6. Ecosystem Support:

• 15% of the SKL token supply is allocated to support the SKALE ecosystem.
• These funds are used to fund projects, initiatives, and collaborations that contribute to the growth and adoption of the network.
• Individuals and organizations can apply for grants from the Ecosystem Support Fund.

7. Team and Advisors:

• 10% of the SKL token supply is allocated to the team and advisors.
• This allocation provides compensation and incentives for the development and maintenance of the SKALE network.
• The allocation provides long-term alignment between the team and the success of the network.

8. Liquidity Pool Rewards:

• 5% of the SKL token supply is allocated to liquidity pool rewards.
• These rewards are provided to liquidity providers who supply SKL tokens to decentralized exchanges.
• The rewards incentivize liquidity and improve the accessibility of SKL tokens.