The inaugural project on ConsenSys’ anti-speculation platform, Activate, has completed a sale with roughly 4,000 investors from 90 countries, the companies announced Monday.
Around 13,000 investors with a total capital pool of $57 million had expressed interest in the Ethereum scaling project SKALE. Around $43 million of that pool was from 4,300 investors who made it through know-your-customer (KYC) checks. Ultimately, SKALE ended up raising $5 million because of regulatory constraints in Liechtenstein, where the nonprofit focused on promoting the SKALE network, the NODE Foundation, is based.
SKALE is a proof-of-stake (PoS) network that aims to run thousands of transactions per second at low cost. Etheruem’s gas fees have skyrocketed in recent months with the network being overwhelmed by demand.
There are more than 50 projects on SKALE that are building and testing, said SKALE CEO Jack O’Holleran. A third of them are decentralized finance (DeFi) projects, another third are gaming projects and the final third are a mixed group.
Activate is part of ConsenSys Codefi, an Ethereum-based operating system for DeFi products.
Activate sets standards for the purchase, distribution and use of utility tokens. Its “proof-of-use” protocol requires tokens to be usable at or immediately after being sold to participants and that tokens are used for their intended purpose.
Initially, SKALE planned to hold a Dutch auction, but the online auction crashed after it was overloaded by front-running software, according to O’Holleran. SKALE then canceled the auction and had two fixed-price sales that allowed the company to decentralize the network as much as possible.
“We changed the strategy to focus on fairness and equal distribution,” O’Holleran said.
Starting Oct. 1, SKALE tokens will be locked on the network and users will have to stake their tokens for 60 days before trading them.