Skale (SKL)

Skale’s native token, SKL token, is used for staking, fees, and governance.

If you participated in the Activate SKALE token sale in the fall of 2020, you can stake and delegate your tokens using this guide. You can also use Etherscan and Metamask to access the network on DelegationController.sol

Initially, SKL is staked to earn new issuance (“inflationary”) subsidies. It means that the SKL supply will increase and stakers will capture the newly issued SKL. Generally, you will earn around 11% annually on your staked SLK, but that can change.

Stakers will also capture fees from network transactions, so as SKL transaction volume increases, SKL stakers will earn more than new issuance subsidies. The SKL also gives stakers the right to vote on policy decisions for how the SKALE will operate and distribute treasury funds. The main drivers of the SKL’s value could be more than transaction fees. SKL holders should be able to extract value related to the “assets under management” that the SKALE secures (via products like DeFi). Owning staked SKL is ownership of the SKL, that entitles SKL stakers to set/change the rules of the SKALE network.

It takes 60 days for your staking delegation to be complete and for your tokens to become liquid (ie. transferrable). If you want to delegate for longer than 60 days, you may elect to have your stake automatically redelegated at the end of the three-month period and will be rewarded a higher amount accordingly.

Rewards are currently enabled. Transfers will depend on the token lock-up schedule. If you purchased your tokens via the Activate Codefi Networks auction, you will need to stake at least 50% of your tokens for three months before you can transfer (or trade) your SKL tokens. If you acquired SKL in any other way, this Proof of Use will not apply.

Staking income on SKALE is automatically distributed every epoch (monthly). Figment is never in control of your rewards. Staking income is staked automatically, which means you will need to unstake to withdraw your staking rewards.

Your potential rewards depend upon validator performance. When your validator is down, you will not be earning staking rewards.

Yes. Malicious action on the network on behalf of your validator will result in a 100% token burn. Double-signing and validator downtime penalties are to be determined by on-chain governance.

SKL is a hard capped asset with 7,000,000,000. The annual inflation rate for SkL is currently approximately 10.96% according to staking rewards. The reward rate is also based on a combination of factors such as staking participation, lockup duration and dApp fees. Inflation rewards will decrease over a 6 year time span but as more dApps use Skale, more fees will be paid by the dApps and distributed to the network than through inflationary issuance.

Figment has partnerships with a number of top-in-class custodians. Please contact support@figment.io for more inquiries. The SKALE network protocol will control staked SKL tokens automatically, however, functions that involve rewards, delegating/redelegating rewards, and unstaking will be controlled by you.

Skale uses off-chain governance to manage and govern Skale’s future. Currently, the community is also able to give input and make proposals about Skale’s roadmap and future. Skale will transition to on-chain governance in the near future.