Layer 2, Ethereum Ecosystem
Skale is a layer-2 solution for Ethereum which provides containerized and virtualized elastic blockchains with Ethereum compatibility which are gasless, rapid and provisionable.
Skale operates on an Ethereum-as-a-service model allowing users to create their own blockchain on Ethereum that can rapidly and elastically provision, de-provision and re-provision resources allowing effective scalability. Skale allows blockchains, sidechains, s-chains and storage blockchains with a high degree of customizability to be created. In essence, Skale allows an infinite amount of blockchains to be created and operates as a blockchain creation compatibility layer for Ethereum. This allows Ethereum based projects to have all the benefits of their own elastic blockchain if required.
Manually claimed by the validator
Reward Distribution Period (Payout frequency)
The start of every new epoch (1st day of every new month)
There is no unbonding period but delegators have to wait until the end of the epoch to stop the delegation
Figment Validator Address
Slashing is not currently enabled
Sake currently has 157 validator nodes from 51 validator services
Install MetaMask, send over SKL tokens
To get started staking SKALE, install the MetaMask wallet to a compatible browser like Google Chrome, Brave, or Firefox. As a reminder, always ensure to backup your seed words and private key when setting up a new MetaMask wallet. Once you have set up the MetaMask wallet, send over your SKL tokens to the wallet. Ensure the MetaMask wallet is also funded with Ethereum for transaction fees.
Staking SKL on Hubble
- Stake SKL via MetaMask
- Track total SKL staked
- Asses active delegations, nodes, and validators
- View validator info such as status, fee rate, and notes
Scroll down to the list of validators and find “Figment Networks” using the search bar.
Once you have selected the Figment validator, you should now see the “Stake Now” option in the top right of the screen. Click on the “Stake Now” button, and you will see a “How staking SKALE works” message box pop up, read through the steps, and click “Start staking”
Next, connect your MetaMask wallet to hubble, and then continue below:
Once you have connected your MetaMask wallet to Hubble, select the number of tokens you wish to delegate, and sign the transaction with MetaMask. Please note there is a 10,000 SKL minimum to delegate. Once the transaction completes, after a couple of minutes, you have officially delegated SKL to a Figment validator. See a delegator address example below:
Delegators staking SKL receive rewards through validators operating nodes, validating blocks, executing smart contracts, and securing the network. When delegating, users will choose a time period to lock tokens. Validators and delegators can expect an approximate annual reward rate of 12% if staking in 2-month increments.
The longer tokens are locked up, the more rewards a delegator can potentially earn. A significant risk factor to consider is token holders who decide to stake cannot trade their tokens and will be subject to slashing if the tokens are moved before the entire duration of the specified time period.
Governance currently happens off-chain, however in 2022 governance will move on-chain.
Users can use the Skale forum (https://forum.skale.network/ ) to ask questions or submit proposals for the community and Skale team to discuss. Users can also submit ideas here in the under-consideration section: https://skale.network/roadmap Ultimately, the determination and final implementation of the direction is determined by the Skale Team but with some level of community direction.
What is staking?
On a Proof of Stake blockchain, staking is the act of depositing tokens in order to become a validator; that is, to participate in proposing and attesting to transaction blocks. Anyone with a minimum necessary coin balance can validate transactions and earn staking rewards on these blockchains.
What is the name of the asset being staked?
Skale’s native token, SKL token, is used for staking, fees, and governance.
Where can I explore the network and create a Skale wallet?
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
Why Stake SKL?
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.
How long does it take to stake and unstake?
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.
When are staking rewards and transfers enabled?
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.
How is staking income disbursed? Is staking income liquid or automatically staked?
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 income.
Can I lose potential staking rewards?
Your potential rewards depend upon validator performance. When your validator is down, you will not be earning staking income.
Can my staked SKL be slashed (seized or destroyed)?
Yes. Malicious action on the network on the behalf of your validator will result in 100% token burn. Double-signing and validator downtime penalties are to be determined by on-chain governance.
Figment insures our clients from slashing and has never had a slashing event.
What is the rate of new issuance (aka "annual inflation") for SKL? How does the token supply change?
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.
What affects future yields?
One of the main factors that affects future yields is the staking duration you set. Skale can be staked monthly, bi monthly or even yearly. Skale allows you to delegate for different durations, the longer the duration the higher the stake multiplier. 2 month periods have a multiplier of 1.00.
Skale delegators can also earn rewards from the bounty pool. These bounties contain both network inflation rewards and issuance from staked SKALE chains.
Do I maintain custody of my SKL tokens? Who or what controls my staked SKL token?
Figment has partnerships with a number of top-in-class custodians. Please contact [email protected] 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.
How are decisions about Skale made and executed?
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.