Go to delegations-helper.skale.network/delegations and connect your wallet
Enter the amount and click on Delegate
In the SKL Tokens section, expand the Select Validator dropdown, and select Chorus One
Approve the transaction in your wallet/ledger to start staking.
The process for governance proposals is still under development. Look for future updates in the announcement channels as well as on telegram here https://t.me/skalefoundation.
The Product Team is working on the plans, see the current roadmap here.
The governing body for the network is the N.O.D.E. Foundation. The Foundation believes that validators must play a primary role in policing. Given their responsibility to the network, validators are highly incentivized to act in their best interest in guarding and preserving the integrity of the network.
The Network of Decentralized Economics (N.O.D.E.) Foundation based in Liechtenstein has been created to carry out the mission of supporting the SKALE Network. The SKALE Network is designed to support businesses, people, organizations that run on the open internet.
The SKALE Network is governed by its code which includes the SKL token. Onchain voting will be required to change any economic principles of the protocol.
The Foundation will support the network by electing a diverse set of Network Representatives. These representatives will ideally comprise dApp developers who run SKALE Chains, validators who run SKALE Nodes, independents such as investors who helped kickstart the network economics, and developers/representatives that actively build, maintain, and evolve the codebase. These representatives will serve the community by facilitating on-chain voting, grants, and budget/treasury decisions. The representatives will be selected by the Foundation initially; however, future elections will be held via a variant of on-chain voting by token holders to choose representatives that facilitate on-chain voting.
Ten percent of the total pool of SKL tokens is allocated to the Foundation and is vested over seven years to provide it with a budget and resources to fulfill its mission.
A SKALE Chain is an Ethereum native and Ethereum-compatible chain that provides developers with increased scalability, faster throughput, and zero-gas transactions over Ethereum mainnet transactions. SKALE Chains provide EVM compute power, decentralized database storage, and other functionality to help not only power dApps but allow them to scale in a cost-efficient manner. The SKALE Network unique Proof of Stake model and operational ties with the Ethereum mainnet provides the security guarantees of Ethereum with the performance and cost efficiency of a Layer 2 solution.
SKL is a utility token that serves as a fundamental mechanism in the security of the network. A significant amount of tokens are staked into the network by validators and delegators as provided by chain sponsors for the provision of SKALE chains. The four primary functions of the SKL token include:
Security of and staking in the network
SKL token holders (delegators) stake their SKL tokens to validators who run nodes that make the SKALE network function by validating blocks, executing smart contracts, and securing the network. They're rewarded with SKL tokens for their efforts.
Sponsorship of SKALE Chains
Developers, DAOs, and other chain sponsors provision their subscription access to SKALE Chains using SKL tokens. SKALE Chains can be provisioned in several sizes and durations with larger chains and longer durations necessitating larger deposits of SKL tokens.
Rewards for validators and delegators staking their tokens
Validator and delegator rewards are accumulated on a monthly basis, based on developer stake for chains and monthly inflation of tokens.
Governance and voting
SKL tokens are intended to be used for onchain voting as the means to control all economic parameters of the SKALE Network.
More details about the SKALE token are here: https://skale.network/token/
The SKALE Network serves as a custodial execution and storage layer (Layer 2) for the Ethereum mainnet. Whereas non-custodial approaches use a system of fraud proofs to allow funds to move between chains, SKALE makes use of BLS threshold signatures, deposit boxes within the Ethereum mainnet, and other mechanisms to allow for custodial ownership and use within the network (which allows it to inherit security guarantees from the Ethereum mainnet but provide the performance inherent in a Layer 2 solution).
The stakes from the validators, developers, and the token inflation, are coordinated through SKALE Manager contracts on Ethereum mainnet and SKALE nodes in the SKALE Network.
This approach is different from other Layer 2 models that attempt to use mainnet interactions to run verification or fraud proofs. SKALE uses the Ethereum mainnet for staking and other mechanistic operations in a way that's better attuned to creating a robust and trustworthy Layer 2 network. SKALE will also support BLS Rollups for use cases that require complete reliance on Ethereum Mainnet custody.
Each SKALE Chain comprises a collective of randomly appointed virtualized subnodes that run a containerized SKALE EVM-client daemon (skaled) and SKALE ABBA-based consensus algorithm. Nodes in the SKALE Network aren't restricted to operating a single chain but instead can support multiple chains via virtualized subnodes. This multiplex capability is made possible via a containerized subnode architecture deployed on each node in the network. Each node is virtualized and can participate as a validator via this subnode architecture for an independent number of sidechains. Chains sizes can be small, medium, or large, with a small chain using 1/128 of a node's resources, a medium using 1/8 of the resources, and a large using the total amount. Medium SKALE chains are available at present but the other sizes will be made available in the near future.
The subnode virtualization is enabled via an innovative containerized architecture that provides industrial-grade performance and optionality for decentralized application developers – performance and flexibility that's similar to traditional centralized cloud and microservice systems. Containers are divided into several main components encapsulated via a dockerized Linux OS, allowing each node to be hosted in an OS-agnostic manner.
The SKALE Network consists of a large pool of validator nodes, all running concurrently and independently, validating transactions within the SKALE Chains they oversee. These nodes coordinate with a set of smart contracts that run on the Ethereum mainnet called SKALE Manager. SKALE Manager includes SKALE Token that governs its issuance and how rewards get distributed to validators and delegators.
Developers request a specific size chain (small, medium, and large), chain duration (180, 365, 730 days i.e. 6, 12, 24 months), and then stake SKL tokens to complete the provisioning of the chain. These tokens get staked into SKALE Manager on the Ethereum mainnet. Each month, a set portion of tokens from this developer's stake move into a bounty pool which is then used to reward the validators and delegators within the network. An inflation event occurs each month whereby new SKALE tokens are created, which gets pushed into the bounty pool for reward to validators and delegators.
For example, suppose there are a thousand validator nodes in the network and they all perform in accordance with the service parameters. In that case, they will each participate in the monthly proceeds from the bounty pool, which includes a portion of the SKALE Chain token stakes plus the inflation/issuance amount. Note that the distribution to the validators isn't necessarily shared equally as there is a modifier component that adjusts the payout based on the stake duration. Nodes with tokens that are locked for twelve months, for example, will receive a greater percentage than those locked up for three or six months.