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Reject speculation! ConsenSys' crowdfunding platform chooses SKALE as its first launch project.

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Reject speculation! ConsenSys

Activate, the crowdfunding platform developed by ConsenSys Codefi, allows development teams to raise operational funds and enables the general public to participate in token sales. According to the latest news, the platform has chosen SKALE Networks as its inaugural project.

Mature Projects that Meet Criteria

SKALE Networks is a Layer 2 modular protocol for building decentralized applications (Dapps) on Ethereum. This protocol allows developers to easily deploy decentralized applications on the blockchain, providing users with the benefits of decentralization without compromising scalability, storage, or security. Additionally, SKALE has garnered significant support from well-known investors. In October last year, SKALE raised $17 million from companies like ConsenSys Labs, Arrington XRP Capital, and Winklevoss Capital.

Collin Myers, Co-Head of Activate, stated that the decision to collaborate with SKALE was based on two main reasons. Firstly, projects looking to launch on the Activate platform must have appropriate token economics, transparent and robust code, and decentralized governance mechanisms, all of which SKALE fulfills as a mature project. Secondly, SKALE's Layer 2 scaling solution aligns with Activate's mission to expand the Ethereum ecosystem, benefiting the overall development of the Ethereum ecosystem. Myers expressed:

"We carefully select projects to collaborate with, with technical maturity being the primary criterion. We do not support projects that cannot quickly progress to the mainnet stage. We aim to work with mature projects that have been focused on participation, distribution, strengthening, and guiding network systems from the outset."

The Activate team estimates that SKALE's token sale will take place in the second quarter of 2020. Prior to this, users can pre-register for token sale eligibility while SKALE's development team continues its testing work.

Combatting Speculation to Create Long-term Value

The key feature of the Activate crowdfunding platform is the adoption of a "Proof of Use" mechanism to ensure that users participating in token issuance are either users of the project or have a long-term outlook on the project's development, rather than engaging in short-term price speculation. In essence, if a user successfully completes all registration requirements for the SKALE token sale and purchases 1,000 SKALE tokens, they will be required to stake 50% of these tokens with SKALE Networks' nodes for a minimum of three months, during which the tokens cannot be transferred, thereby obligating the user to participate in network governance.

Ejaaz Ahamadeen, Head of Activate, commented:

"Typically, token issuance is for raising funds for speculation and providing immediate tradability, as seen in many past ICOs and IEOs. The significance of partners issuing tokens on the Activate platform lies in their pursuit of 'having a network with a large number of truly engaged and decentralized users.'"

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