SKALE to be the first project to launch on ConsenSys Codefi’s token sale platform, Activate

Layer-2 scaling project SKALE will be the first project to distribute its token through Activate, a platform built by ConsenSys Codefi for launching decentralized networks. Activate's unique design allows investors to purchase new assets but deters speculation by requiring token holders to use these tokens for their intended purpose. In SKALE’s case, investors would need to stake at least half of their holdings on the SKALE network for 90 days before they can transfer or redeem the acquired tokens. Activate estimates SKALE’s Dutch auction and launch on the Ethereum mainnet will take place in Q2 ’20.

Why it matters:

• Activate’s “Proof of Use” model originates from Token Foundry, another ConsenSys-backed startup. Several projects have since adopted this token distribution strategy, including Edgeware and NuCypher, because it could theoretically capture more investors with a long-term interest in the network than airdrops or ICOs. Now Activate has managed to commercialize Proof of Use, so projects no longer have to build these solutions in-house.
• Activate also screens its launch partners and works to hold these projects accountable on their path to maturity (i.e., decentralization). While Activate’s standards are still prone to bias, this vetting process is another step towards finding a compliant middle-ground for token sales.