Token Spotlight: SKY
7/26/2024
This week’s Token Spotlight focuses on the $SKY token, the governance and utility token of SKY, a Layer 2 data availability protocol building on Cardano. This project recently launched its token sale as well as protocol development to help Cardano scale. This article will delve into the SKY, its tokenomics, utility, and more.
SKY Tokenomics & Distribution
SKY has a total supply of 100 million tokens of which currently 28.60 million tokens are circulating. At 0.0383 ADA per SKY, this gives the token a Market Cap of $451.66K and a Fully Diluted Market Cap of $1.58M, placing it at #71 in the top 100 tokens on Cardano by Market Capitalization.
There are currently 440 wallets holding SKY, up 22.91% in the last 7 days, highlighting a growing community that has been following the project since its recent token launch.
The above image details the tokenomics of SKY. A large portion of the supply is dedicated to the public sale, as well as the DAO treasury and public liquidity.
Liquidity
SKY has 85.38K ADA in liquidity across three Decentralized Exchanges on the Cardano blockchain. The majority of this liquidity is on the Splash DEX, with SundaeSwap being the second most liquid DEX for this token.
Volume
SKY has a Lifetime Trading Volume of 1.62 million ADA across 2,369 trades. The majority of these trades have taken place on the Splash DEX. The token has had 821.86k ADA in buy volume and 799.39k ADA in sell volume. The fish (5–25K ADA) wallet size leads in trading volume, followed by the swordfish (25–100K) wallet size. The whale (1M+ ADA) wallet size has the least trading volume amongst traders.
Utility
We’ll now delve into the utility the SKY token has to offer
Governance: SKY token holders can participate in decentralized governance to decide parameters changes including grants, governance structure changes, emissions, and the future development path of the Layer 2 Protocol.
Transaction Fees: The Sky token will be used to pay for data publication fees.
Staking: Sky token holders can stake their tokens to participate in securing the network through a proof of stake mechanism. Holders will have the ability to become a validator or stake their $SKY tokens to a validator on the Layer 2 Protocol.
Network Operation: Topic committees act as network guardians, collecting data from side-chain operators, accepting fees in SKY tokens, and monitoring the behavior of previous committees. Hierarchical consensus committees then compile this data into a common ledger and manage stakes and voting for selecting committees.
Conclusion
The $SKY token is integral to the governance and operation of Sky, a Layer 2 data availability protocol on Cardano. Layer 2 solutions like Sky Protocol are crucial for Cardano’s scalability and throughput as it moves towards its next era. The Sky protocol is set to significantly enhance the Cardano ecosystem’s efficiency and throughput. It will be interesting to see the SKY protocol develop in the coming months and years.
You can find out more about the Sky Protocol at the following link: https://www.skyprotocol.org/
This article is strictly for informational purposes and does not constitute a promotion or financial advice. Our aim is solely to provide users with the latest news and updates within the Cardano ecosystem. Token info was accurate at the time of writing.
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