January 9, 2024
SKALE Chain Pricing Is Now Live On Mainnet
SKALE Chain Pricing is officially live on mainnet, with first payments due February 1
SKALE, the worlds fastest blockchain, sets itself apart from traditional L1 and L2 blockchains that typically rely on inflationary measures to subsidize low gas fees. Instead of adopting an unsustainable model that may eventually lead to increased fees or perpetual subsidies, SKALE opts for a sustainable system with zero gas fees for end-users, financed through chain fees. This approach positions SKALE for mass adoption and long-term economic stability.
Following the successful snapshot vote of SIP 1: The Addition of Chain Pricing, chain subscription fees are now live on mainnet. Read on to learn how this sustainable economic model will be implimented.
A Three-Phase Approach to Economic Resilience
SKALE's economic model unfolds in three strategic phases, each designed to build upon the last, ensuring a steady path toward network maturity and financial sustainability.
Phase 1: Laying the Groundwork
With the launch of chain pricing came the conclusion of Phase 1. The focus was on stimulating developer demand and network activity. Grants supplemented chain fees, mirroring models like AWS's approach to growth. This phase laid the foundation for an active network, with over 250 million transactions from over 8 Million unique wallets across 20 active SKALE chains, resulting in more than 2.5B USD in saved gas fees in the last year.
Phase 2: Introducing Chain Pricing
As the network embarks on Phase 2, SKALE Chain pricing is meticulously designed to achieve validator hardware profitability. With a target of $1M USD equivalent in SKL tokens paid annually per chain at a network load of 70%, the pricing operates on a sliding scale. This innovative structure ensures that as the demand for SKALE Chains increases, validators are incentivized to add more nodes, thus maintaining a competitive price point for chains.
At the outset, chains will cost approximately $3,600 per month at 8% of the Target Rate, rising steadily to about $46,000 at the Target Rate of 50% network utilization, and reaching approximately $84,000 at 70% utilization. This approach not only stimulates network growth but also supports validators in running profitable operations. The video below shows how SKALE chain owners pay their subscription fees via the SKALE Portal.
Phase 3: Looking Ahead to Dynamic Pricing
Looking ahead, Phase 3 will introduce advanced dynamic pricing smart contracts. This phase will focus on enhancing network revenue and value capture, with the aim of transitioning to this model in the next 12-18 months. Dynamic pricing will enable the network to dynamically adjust chain prices based on the supply and demand of SKALE chain rentals, promoting a healthy balance of network growth and economic sustainability.
For a comprehensive understanding of the mechanisms that will drive SKALE's economic model forward, visit the SKALE Forum discussion “Enhancing the Evolution of SKALE Chain Pricing and Moving into Network Growth Phase 2”.
SKALE is the world's fastest blockchain, designed for fast, secure, user-centric Ethereum scaling. SKALE chains offer zero gas fees to end-users and have advanced features such as ML/AI smart contracts, on-chain file storage, interchain messaging, zero-cost minting, and enhanced security features.
The SKALE Network enables developers to deploy their own EVM blockchain in minutes without sacrificing speed, security, or decentralization. Welcome to the SKALEverse.