SKALE Network is a Layer-2 (L2) scaling solution specifically designed for Ethereum. Its core mission is to solve Ethereum's scalability limitations (high gas fees, low throughput) to enable mass adoption of dApps (decentralized applications).
Core Technology: SKALE utilizes elastic sidechains. These are independent, high-performance blockchains that run parallel to Ethereum. dApps can deploy their own dedicated sidechain tailored to their specific needs.
Key Features:
High Throughput: Claims to support thousands of TPS (transactions per second) per chain.
Zero Gas Fees for End Users: dApp developers pay network fees in SKL tokens, but users typically experience gas-free transactions within SKALE-powered dApps.
EVM Compatibility: Fully compatible with the Ethereum Virtual Machine (EVM), making it easy for Ethereum developers to migrate.
Decentralization: Secured by a decentralized network of validators using SKL tokens for staking.
Problem Solved: Directly addresses Ethereum's scalability trilemma (Security, Scalability, Decentralization) by offloading computation and storage from the main chain while inheriting Ethereum's security.
Tokenomics (SKL Token)
Ticker: SKL
Total Supply: 7,000,000,000 SKL (fixed)
Circulating Supply: ~5,100,000,000 SKL (as of late 2023/early 2024 - verify current figures). This is a high circulating supply relative to total.
Token Utility:
Staking & Security: Validators stake SKL to secure the network and earn rewards. Delegators can stake their SKL with validators.
Network Fees: Developers pay for resources (computation, storage) on SKALE chains using SKL tokens. These fees are burned, creating deflationary pressure.
Governance: SKL holders can participate in network governance decisions.
Validator Licensing: Potential future use for validator licensing slots (though not fully implemented yet).
Distribution: Initial distribution included public sales, ecosystem fund, team/advisors (with vesting), foundation, and community rewards. Significant portions are vested, meaning they unlock over time.