A Primer on the SKALE DAO
|SKALE DAO and Governance is early in its launch process and this document may change frequently as feedback is captured.|
SKALE Network is a decentralized and modular EVM compatible multichain network that scales Ethereum transactions. Developers use SKALE Chains to build and deploy performant and user-centric decentralized applications.
The distribution and staking of the $SKL hybrid utility token enables decentralized governance of SKALE Network.
Staked $SKL tokens enable voting on SKALE DAO governance proposals, thereby facilitating $SKL delegators to collaboratively guide the evolution of SKALE.
SKALE Network is a high-performance, cost-effective blockchain network that complements Ethereum. Developers utilize SKALE to build user-friendly and performant decentralized applications (dApps) benefiting from the scalability offered by the SKALE Network.
Launched in 2020, the SKALE Network has continuously improved its performance and scalability. The $SKL hybrid utility tokens facilitate decentralized control over the SKALE Network and its underlying infrastructure. Staked $SKL tokens permit voting on SKALE DAO governance proposals, enabling $SKL token holders who stake to influence the future of SKALE collectively.
Governance refers to decision-making processes and actions by which systems update and maintain themselves. Traditional governance in companies, governments, and institutions involves a decision making process that is relatively centralized and permissioned - for example processes that are made by a board of directors elected by shareholders.
Web3 technologies, like SKALE’s protocols and chains, are initially developed by companies but progressively become decentralized with the growth of a user and stakeholder community. This progressive decentralization typically involves DAO formation and launching a process by which certain stake holders may vote. In this way, The SKALE DAO, a decentralized autonomous organization, has decision-making authority over the SKALE Network and its associated technologies. To steer the SKALE DAO, staking $SKL tokens signifies DAO membership. Staked token holders can vote on DAO proposals.