Skale

SKL is an Ethereum-based token that uses the ERC-777 standard. ERC-777 tokens are similar to ERC-20 tokens, but they use “made aware hooks,” which let token transfers occur in one transaction rather than two. The Skale team elected to follow the ERC-777 standard because of its support for token level delegation – a system that allows a user to stake SKL tokens using a delegation key instead of locking up funds in a smart contract – and its backward compatibility with the ERC-20 standard.

In September 2020, the Skale Network launched its token on the ConsenSys Activate platform. It chose that platform because of Activate’s ability to handle the Skale Network’s “proof-of-use” standards. Proof-of-use is a variation of the proof-of-stake (PoS) consensus algorithm. Some 4.14 billion SKL tokens were initially distributed at launch, with a maximum supply of 7 billion SKL. The token distribution was as follows:

• Delegator Allocation (28.1%): The delegator allocation provided SKL to public launch participants, with the remaining supply going to early supporters of the network.
• Public launch participants (4.23%): 3,736 users participated in the public launch, purchasing 167.1 million SKL for $0.03 each.
• Early Supporters (23.87%): Early supporters were provided SKL both pre- and post-launch. Tokens received pre-launch were distributed in three rounds, with varying prices for each token and fixed lock periods between two and five years after the launch.
• Founding Team (16%)
• Core Team (4%)
• Skale Foundation (10%): Skale’s Network of Decentralized Economics (N.O.D.E) Foundation was allocated SKL to support the development of the Skale Network.
• Protocol Development Fund (7.7%)
• Ecosystem Fund (1.3%)

The remaining 33% of the total supply of SKL tokens were reserved as validator rewards in order to encourage network participation. Validator rewards are distributed at a rate of around 9.3% each year and gradually decrease in issuance over seven years.

SKL was launched at $0.03 and never looked back. Although in the first round of the pre-launch, participants were able to purchase SKL for $0.0034 apiece, SKL has never fallen below $0.03, making its launch price its all-time low.

SKL’s price spikes have trended with the token’s listing on exchanges. The token was first listed on Binance at the end of 2020. Following the announcement that SKL would receive its second exchange listing on Huobi, the price of SKL doubled in two days. SKL reached its all-time high of $1.22 in March 2021 following the token’s listing on Coinbase.