Enhancing the Evolution of SKALE Chain Pricing and Moving into Network Growth Phase 2

Governance
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Hey everyone!

Thanks to all for participating here on the forum, those who helped with research, those who helped with design, and in general just those who have supported with their feedback throughout the process.

At this point in time, as there have been no directly proposed changes and we have agreed to come back and continue to iterate on this on a consistent basis as a community to find the; the vote has been opened on Snapshot for delegators and validators of the SKALE Network to vote on.

This officially comes in as the first SKALE Improvement Proposal (e.g. SIP 1) and is available to vote on here: Snapshot

Thank you!

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Hey SKALE team,

Kudos to @TheGreatAxios, @payvint and the whole team for detailed steps and plan laid for SKALE Chain pricing. We like the presented proposal and think it is well thought out. Phase 1 is ending with success, we are noticing increased activity, with more teams working on SKALE and ecosystem gaining traction. Therefore we encourage the idea of the dynamic pricing model introduced and hope it will work as planned in order to incentivise shareholders of chain for long-term growth.

We are looking forward to see utilization curve versus growth of dapps on network as we proceed to Phase 3. We like the idea of a sliding scale based on network utilization as it adds flexibility and responsiveness to the network. We see that a lot of effort and technical details were considered in the proposal and we appreciate the focus and consideration given to compensating validators for their cost.

We commend SKALE team commitment to decentralized governance, preparing timeline and specifications for each stage and trusting the community with the decision. We hope the team will be open to reconsiderations based on the responses of the community and network evolution once chain pricing goes live. As a validator, we look forward to seing the plan above be put in action, marking the next stage in SKALE’s evolution. Exciting times ahead for SKALE!

2 Likes
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Hey everyone,

Glad to see this important side of SKL token utility moving again. At Exorde we are lucky to have seen the evolution of the SKALE project over the last few years. @TheGreatAxios @payvint

We have been attracted to SKALE due to the chain model, flexibility and control, and gas-less ness, and we continue to do so.

We do now around 350-400k transactions a day, on a very stable basis. We now proudly represent 60%-70% of the transactional load on SKALE right now. We have been collaborating at a very fundamental & technical level with SKALE for a long time and we are pleased with the service.

We’d love to give our feedback on the proposal, and the general question of the SKL/Skale Chain pricing model:

  1. The model is great. The $3600/month price per month is reasonable and expected. In our experience, it is in the same order of magnitude as what would be the gas cost of our operations on another L1/L2 platform.

  2. Being able to prepay long-term is crucial. Meanwhile being able to accumulate SKL to pay in the future is nice, certainty is a must for a business dealing with lots of uncertainty already. Good that it will be possible as soon as possible.

  3. The payments going directly 100% to the validators make complete sense, the infrastructure is key, and I believe this should remain the case forever (for at least 90%).

  4. Keep in mind that SKALE chain “users” (like us at Exorde Labs) usually reason in terms of competitiveness and gas cost (w.r.t the competition in the L1/L2 space).

  • It makes sense that if networks approach saturation, the incentivization to boot new SKALE chain nodes should increase to bring more “node supply” to the network requiring new chains.
  • It makes sense to have an increase of SKALE chain price, but the exponential growth rate of the price could not be the best idea. Maybe imagine an auction system when the network reaches saturation? It would probably capture demand more accurately.
  • A temporary sudden $40,000 USD+/months price acts, for us, more like a deterrent. If the monthly cost, during a high utilization period (>60% for example), is high, a new SKALE network client is more incentivized to wait for the price to come down, than pay 10x+ the price of his transactions/protocol on another network, before migrating back. This is a question of balance, and maybe a smoother price curve is to be explored at least initially?

Overall we believe the pricing model to be very good and intuitive, with a note of exception on the pricing model during network saturation: we would expect the network to incentivize new nodes, without deterring new clients that much. Stability is one of the key differentiators of using SKALE and we are glad it’s being considered.

Thanks

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