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SKALE Network Q1 Community Wrap-Up W/ Jack O'Holleran
Recorded: April 8, 2025 Duration: 1:12:01Space Recording
Short Summary
In a recent Q&A session, Scale's leadership discussed the project's growth trajectory, strategic partnerships, and innovative initiatives like Byte Protocol, while addressing market challenges and emphasizing community engagement.
Full Transcription
Продолжение следует... Thank you. Thank you. Thank you. Спасибо. Продолжение следует... Thank you. so
morning good evening and good afternoon to everyone around the world.
And thank you for joining us today for a very special Q&A with the one, the only, Mr. Jack O'Holloran.
How are you doing, my friend?
I'm doing good. Excited to talk to everybody today.
Yes, definitely. So for those of you who don't know what we're doing today,
we're going to be looking at what's been going on in the world of scale what's happened through q1
we have a bunch of questions from you guys that we're going to be answering as well um and yeah
we're just going to be having a a grand fun funnel time and making sure everything is, you know, everyone's as happy and informed as possible.
Hey,
Felcour, I don't know if this is just me,
but you're frozen.
Great.
StreamYard usually throws
curveballs whenever we do these.
Yeah, apparently I am frozen.
Okay.
Am I...
Okay, let me quickly sort that out.
All good. All good. We can hear you loud and clear.
Great. It's always, always tech difficulties with me.
Am I still frozen?
We just can't see you now but but you know what hey falker what
sorry i'm coming coming off of a cold here so bear with me everybody um so i think while you
fix that why don't i jump into uh just kind of like an introduction of why we're doing this
yeah sure that sounds great and make the question by the way, thank you for submitting questions. I always want to make sure
people have information and they're up to date. If you're not in Discord, if you're not in GitHub,
you're not in the research channel, and you're just on Twitter and elsewhere, I can see it's
hard to keep up. So I think it's good for us to do these things and make sure we convey information to everybody too. If you hold scale, you're part
of the scale community, you're a scale owner, and it's a decentralized project. So first thing is,
let's call it the big elephant in the room. Like the markets are in turmoil. Okay. It's a, it's a absolute, you know, chicken little situation going on.
And, and we're, you know, if you only follow scale, then you don't realize this is not
just a unique thing.
This is, you know, every token is, you know, getting beat up.
Every equity is getting beat up.
And every, you know, when this happens, guess what? people get pissed off. And they want to know what's going on. And I makes
a ton of sense to me. And part of my job is to make sure people know what's going on.
The other part of my job is, you know, as a core team leader is make sure we have the right
strategy and direction. And we're doing things about these problems, okay, because these problems
are a lot of it's out of our control, but then there are things in our control.
So what can we do to be more effective?
And my big point here is we are here to win.
We are winners.
Like the scale,
I think we have the best core team out there.
I look at our engineers.
I look at our BD people.
Look at the marketers.
I look at the community people.
I look at the solutions engineers. Amazing talent. Then I go look at the marketers. I look at the community people. I look at the solutions
engineers, amazing talent. Then I go look at our community, the community I know, like I think we
have the best community. We have smart people that are engaged. They're on the timeline.
You know, everyone's playing a role here. We've got a lot of great backers and I think we have
the best validators in the world. Lastly, like I know a lot of our DAP partners are watching.
We have so many phenomenal teams building on scale,
hundreds and hundreds of teams,
like 350-ish teams have signed to build on scale.
There's another 135 deploying right now,
getting ready to go live
and join the other 100 plus that are live.
So, you know, everybody, you know,
we've got winners and everyone wants to make sure there's a cohesive direction. So I'm excited to
share that today. And I'm going to do that through the format of the Q&A. Okay, your questions.
I'm not going to give you a big, long presentation. I'm going to just answer your questions and,
and, you know, pull this out as we as we go yeah so we've been actually curating
questions you know over the past couple of weeks couple days um and uh obviously if anyone has any
questions that they want answered they can drop them in the chats and we can we can take a take
a stab at them and i think my camera camera's back. Yeah, you're back.
You're back.
Awesome.
Not awful when it breaks.
Emotion.
Let's go.
But no, thanks for that kind of like intro
into what we're going to be doing today.
For people that are kind of potentially new to scale and who are seeing this for the
first time either on X or on YouTube and they see just two guys sitting here, why don't we
give them a little bit of an intro about yourself and then scale and then we can start jumping into
the main portion of this AMA. Yeah, well, I'm going to start by saying
for scale is a blockchain, okay? It's a decentralized blockchain. And that's important
because before I introduce myself, I want people to recognize that. And you look at Bitcoin,
you look at Ethereum, there's no CEO of Bitcoin. There's no CEO of Ethereum. There's people that, you know, have
roles like in core teams and in foundations, but that's different than, you know, being like the
CEO of a company of like Tesla or Salesforce.com or Oracle or, you know, Chase Bank. Like those
are centralized companies, even though they have shareholders, it's a different type of thing.
Cause we, as a core team,
we don't run a single server in the network.
We contribute open source code.
There's voting that determines all economics in the network
and all technical decisions are made through a quorum
of open source developers agreeing on things.
So, that being said, so Scales of Blockchain,
I'm the, you know, one of the founders. I'm the
CEO of Scale Labs. We're the core team behind the Scale Network. And I've been building tech
companies for a really long time. I started an enterprise software, mobile security, went into
AI for almost a decade. I built some really successful companies and we started scale back in 2017 with the goal of helping billions of users access blockchain.
And the way we wanted to do that was was helping people execute on a high quantity of transactions for lots of users.
OK, we saw ourselves as the cost effectiveness blockchain. Let's go win gaming.
Let's go win AI. Let's go win deep end. Let's win these categories that have millions and millions
of lower value transactions. They're not just someone swapping something with someone on Uniswap.
And so that was our goal. And we're executing well on that. And we're going to get in more to
what we're doing good and where we can improve as a project but um but anyways my you
know if you haven't met me yet nice to meet you that's who i am it was actually like the main
thing that attracted me to scale was uh you know obviously the gas-free onboarding experience you know it just opens up the the potential you know user base
and mass adoption of the technology right instead of having to pay ten dollars twenty dollars for a
transaction you know people who are around back in 21 nft days remember how how bad uh gas fees could be and you know i i could never pictured a a gay web3 gaming to
really succeed or even like the likes of ai to to succeed in a in a model that was charging you
astronomically high amounts of fees every time you wanted to do something. And that was the thing that really attracted me to scale was like, you know, taking, taking
the, taking the, the, the, the, the pain and the friction out of onboarding people into
Web3.
Yeah.
And that's, that, that was our goal.
I think we're doing a good job at it.
Um, but I think there's more to do, um. Because what we've realized is that alone is not enough.
But we'll get into that in a minute. So, but awesome. Yeah, Felcor. I mean, that's,
we, you know, one thing we have done really well is we've set goals on certain areas,
and we've dominated in those areas. Now, I think everyone's a little frustrated
that we're not getting as much awareness and attention
for winning in those areas.
And I think a part of it is just how many eyeballs are on those areas.
And so anyways, I'm getting ahead of the Q&A.
We'll run it back a bit.
We'll run it back a bit we'll rein it back a bit
but no I think
one of the
you know we are going to be
talking about kind of
these ideas
I won't say plans necessarily that
we did want to kind of communicate
to the community
to people that are tuning in today and who are watching.
So before we jump into the actual Q&A aspect, Jack, do you want to potentially go over those main kind of points you wanted to get across to the community on what?
Yeah, I think let's just go through the Q&A.
You want to go through the questions first?
Yeah.
Cool.
I mean, that's kind of my thinking.
Like, yeah, let's jump into the questions,
and I'll talk about those things.
Yeah.
Going through.
Sure.
Let's do that then.
Okay.
So, as I said, over the past couple of days and weeks,
we've been kind of curating questions.
So to kick things off, we have a question here that says,
there are a lot of questions we had about the strategy
and the direction of the project.
The community wants to know where we are and where are we going?
Yeah, so this is a great question. And a lot of people, you know, even, you know,
hitting up people on the team, getting on the timeline and Twitter. A lot of it's like,
where are we going? But I think also, where are we? And so number one, let's look at what we've done well. I'm looking here, DAP radar today.
We're number five in transaction volume, okay?
And we're at like almost 100 million.
Let's see what we were the last 30 days.
94 million transactions the last 30 days.
That's steadily climbing. And we've been climbing since
October. We were at 57, then 67, then 72, 86, 98.4 in the month of March. So we're, you know,
steady increase. And that's because we're getting more and more applications on board that are gas hogs.
They need a ton of transactions, got lots of users.
You look at users, we're,
your UAW, we're number seven
of all blockchains of layer two.
So we're, our goal is to be a top, you know,
10%, top 10 project.
And one premise we have is in crypto, in Web3,
if you're not in the top 10%, you are struggling for error. You're fighting to get a piece of the
narrative. And so you have to be in this big, you have to be where it matters. And so then
we're executing well there. I think we brought in a whole new, from a core team perspective,
a whole new marketing team.
There's a whole new ambassador team globally.
We're part of the community that have joined.
Falcor and a bunch of others are new here
that I think are doing a phenomenal job.
We're bringing more content, more awareness,
more real quality elements to drive awareness in the timeline and in socials.
So those things are going well.
Our business development, we're bringing on so many applications.
We beat projects every day who are huge,
who have way, way bigger from a market perspective than us.
But we dominate them where it matters with developers.
So anyways, those are
all good. But what are we not doing good? Well, the reality is the market isn't caring about
our success as much as they are other people's success. And we're decentralized. By the way,
none of this is financial advice. I'm kind of outlawed from, I don't talk about prices. I'm talking about, I'm going to talk
about awareness and, you know, how that fits. And, you know, you can draw your own conclusions,
but from an awareness perspective, we're not getting the attention the others are. Okay.
And, and we feel like we deserve it. But part of that is we just had to be, you know, about six months ago, we got together and said, we really need to plan for 2025.
How are we going to break out? And so one idea was just keep doing what we're doing better and better and better and bigger.
Another idea was, no, let's do something different and unique. Let's break out.
And part of that is you look at where we sit in the TVL rankings.
We're not dominating TVL.
We're not in the top 100.
We're not in the top 10.
So we need to get, we have all these applications using transactions, but we need them bringing
the money over.
We need them bringing their ETH over and their USDC.
And we need more commerce happening.
And what's happening today is a lot like commerce is happening on Ethereum and happening on BNB and happening on other chains
and users come over and they use scale to transact. And hey, guess what? We have fees
going now. There's people paying for chains. That was a huge success. The fees just doubled.
We've got all these people paying. We're doing great with revenue compared to most other projects.
But that being said, it's like not enough to drive the needle to win the awareness battle.
So we have to do better in terms of capturing value in the scale ecosystem.
Layer ones do a great job capturing value because people mint tokens there.
They do all these things.
And layer twos weren't designed to capture value. They're designed to scale. But then the layer twos on
Ethereum, the proper layer twos, frankly, are fighting for TVL. They're trying to pull TVL
off of Ethereum onto their layer two. And they're almost being parasitic. And so you see this transformation happening because everyone realizes you need value on their chain on chain.
So so the other thing is, you know, I already mentioned this, but we knew we had to do an even better job of driving awareness than we were and being part of the narrative and owning the narrative.
and being part of the narrative and owning the narrative. So, so, hey, there's things we're
doing well. There's things where we can improve on. And the things we can improve on are kind of
like, you know, how we came up with this plan. So, so the plan we came up with on a core team
perspective was, was for 2025, what can we do to really, you know, break out into the next,
to really, you know, break out into the next, you know, that next tier where we feel like we belong.
And one, hey, when the market's in total despair, don't expect any magic to happen.
This is a plan that is going to take time to implement.
And then we're going to have to keep executing on it.
Okay.
This isn't an overnight fix, which if anyone ever tries to give you an overnight fix, don't believe
them. They don't exist. There's three pillars here. We said, what are strengths and weaknesses?
What can we do to get to the next level? Number one, we need to play bigger. We have to be on a
bigger playing field. We need a bigger vision. And guess what? That cascades down into other things. It
helps you be part of the narrative. It helps you capture more value. And so if we just keep the
product as it is and just keep executing around it and keep trying to pull value over to Europa
and doing things we're doing, we feel like it's an uphill battle. And so what does that mean?
That means we need to build more. That means we need to innovate on a technical perspective. So you've seen a lot about Byte Protocol. It's still, you know, just living in developer chats and, you know, some of our technical teams tweeting about it, but we're also doing innovations in AI.
At some point when we get the right level of buy-in
on the strategy from the developers.
Now you look at Ethereum,
there's a million ideas going around
and eventually all the developers
and all the people they come to this agreement
and then they're like,
now we're launching this EIP number, whatever.
And when we try to, it's almost, it's politics.
And guess what?
We have the same thing.
We have like, so many different node operators,
so many different developers,
different open source contributors,
lots of core team devs.
And we got to get consensus on what we should do.
Because if we don't, then we split.
If we split, we break.
So we've got to keep that bond amongst the community.
So what we're going to do is, I think we're getting close here,
but we need to codify a vision that lets us play bigger.
Let's us take these new technologies we're developing
and essentially launch new products that are synergistic with scale.
Okay, so you have scale.
If we can add one plus one equals 10, that's what we're
going for. Okay. And so we need to do that to capture the narrative, to play bigger, to win.
And so that's what we're doing. Now, I don't want to say, hey, here's the idea is what we're doing
because I've learned from working in crypto for seven years. If you ever say you're going to do
something and you don't, you hear about it 10, 10 000 times and i don't want people in the community being pissed at me hey
you said we're doing this we don't know if we're doing that or not these developers will be very
mad at me if i'm promising things right now uh that are not part of the plan okay all right so
that's point one you know which is new build new products build a bigger vision. That adds synergy, that doesn't take away.
Point two is all about owning and winning the narrative. This is really multifaceted. And we've
realized we can't win and own the narrative. People are like, how come more people aren't
talking about scale? Well, we've got to be bigger and do more. And so point one, it will be the biggest thing to help point two.
But on top of that, I think the marketing team here at Scale has just innovated tremendously
and changed and added so much that you just see it every day on the timeline.
You look at Twitter, look at all the stuff we're producing, look at...
Look at Twitter, look at all the stuff we're producing, look at.
But that plus, I think, like really leaning in as we get to this next phase into, you know, KOL marketing, partner marketing, getting into other communities in other regions are going to be really critical, especially in the Asia region.
We're really making progress there now. I think some projects outperformed us in that global region and have a lot greater awareness than us than we are awareness share in the US or Europe. So we need to get stronger in Asia. We need to get stronger in South America. I think we're doing a pretty good job in like Middle East Africa, but we can get even stronger there.
but we can get even stronger there. And, and I think we do a pretty good job in Eastern Europe,
but we can get stronger there, but we've got to geographically drive awareness too. And you have
to do that through partnerships, through people who have platforms in those areas. But the goal,
the whole goal is having something that really is meaningful and authentic for them to talk about.
Okay. We are, you know, there's a lot of snake oil people who like don't want to build
real products. I have to say, I'm so proud of the fact that like we set out to build a product
and we built it. Okay. As a community in a decentralized manner, it works. And why do we
win all these deals? Cause people test different platforms and ours works the best. Okay.
And ours works the best.
Okay.
But we need to be able to capture more value and lean into that.
All right.
But I just want to be really clear because I know everyone talks about this.
And anytime the market's down, people are like, where's the marketing?
Like, I think we're, you know, points one and two really help us.
And I think we have the right team in place um and
right community people in place as well uh to do that i think like like kind of following on from
that you know i can kind of uh attest to the uh like the marketing point of view specifically
within the likes of you know southeast asia and south america you know we've we we have built would
have built out and are continuing to build out a robust ambassadorship program.
We have people based in Nigeria, Colombia, Germany, Hong Kong,
and we're building out other locations as well.
And to your point on our focus on SEA and Asia marketing, there is a lot going on in the background.
I know it's like one of the worst things for people to say.
It's like, oh, yeah, we're working on it.
You'll see it soon.
But trust me, we are working on a lot right now with different entities, uh entities calls content um you know everything
and in between um and you know you're gonna see some potential changes you know like from our
twitter you know having slight slight adjustments from kind of how we were to how we want it to be
in the future um you know really doing big pushes on on educational content you
know really getting people to understand what is it that makes scale so amazing and why do so many
people pick scale to to build on you know um you know we have like we're second to ethereum on
github commits like we we're we're above like BNB, Bitcoin, Solana,
like all of these other massive tier one names.
And there's a reason why developers are picking scale
to build on and it is what we're doing
and what we're offering.
Yep.
Yeah, and I think what we want them to do
is do even more with us. To make it really simple,
we want you minting your token on scale. We want you building all your primary trading and liquidity
and your swapping on scale. We want to attract the best DeFi projects natively on scale and
things like Byte Protocol are going to help us do that. OK. And so, yeah, we've got to we've got to lean into what we have and then, you know, take it to the next level.
OK, so the last piece, last third piece here is it's all about governance, decentralization and community in a package.
governance, decentralization, and community in a package, okay?
You look at some of the strongest projects out there.
You look at Ethereum and Solana as two examples.
Very decentralized, ton of involvement from the community.
Proposals aren't just coming from the core team.
We have so many developers building on scale,
so many validators, so many smart people in our community.
We need more people to get involved, okay. And so I think things like opening up voting to any token holder in different
ratios to stake for network security, getting more people involved with governance is going to be
critical. Introducing governance plans that I think are smart that are just burning mechanisms.
I'm really against, I'd say net short-term,
net negative burn mechanisms.
It's like a lifeline.
You see a project like, oh, we just burned all this
in one time, and then like the market cares for three days
and then people are just like, okay, you're still,
what's your output?
What's your economics?
What are the fundamentals of this project?
And what really makes sense, though, is when people introduce burn mechanisms
that are net positive and they're sustainable.
And you look at Ethereum introducing burn, that was amazing for Ethereum economics.
Scale actually has a fixed supply.
We have a max supply, which is a huge advantage for our
economics. A lot of networks just will inflate in perpetuity. We actually have a maximum quantity.
And, you know, and I also want to say like that inflation, I know people are,
one, I'd say check your stats because everyone from an unlock perspective,
every single token is unlocked other than foundation tokens. So all the people, all the VCs that held, all the core team things
that were part of the original piece, all of that is not coming in as new. The only things new coming in are foundation treasury
that are under a seven-year annual vest period where every six months, you can look at the
network supply and maybe, Falcor, you can post that in the show notes or something,
the scale network supply. But we are now at a point where everything's in
circulation. So it's a huge advantage for us. We don't have people who now are unlocked who want
to sell. And again, this is not financial advice. I don't know who has tokens or who's buying them,
who's selling. There'll always be people doing that. But what I can tell you is that if you look at our initial supply chart and we had
you know x percent that were sold to vcs all anyone who could sell has already um and so
or sorry anyone who could sell has the opportunity to already i think there's a lot of people uh that
are holding and believing in the project still um i know that. Okay. So one, wanted to address that.
I'm getting ahead. I know this is a question somebody had later, right, Falkor?
Probably, yeah.
But the other thing I want to say is when it comes to inflation, were we used to inflate 32 million tokens a month.
Now our inflation has, every year it drops.
It went from 32 million a month to 28 million a month to 25.6 million a month to 22.4 million a month, to 25.6 million a month, to 22.4 million a month. And then in October this
year, after the year four, it just dropped down to 19.25 million per month. Okay. Our inflation
is on a predetermined schedule. It'll go this October to 16 million. And the whole point is
we have to have inflation because it feeds validators and stakers.
And if you don't have those, no one's going to secure the network. Okay. And why does the network
need to be secure? Because we have three and a half million wallets a month and a hundred,
you know, some quality applications running 94 million transactions a month. They need security.
Okay. And so we could trim that inflation massively, but it's already
being trimmed. And somebody could put a proposal out tomorrow and go to the scale governance page
and put a proposal out. Please do that if you have ideas. But these numbers are already going down.
But these numbers are already going down.
My feeling is to make the project even stronger,
what we need is we need more economic throughput.
We need more, that's what I said, more TVL,
more tokens being minted.
And we need products that help people do that
and give them confidence to do that
so we can compete and be a top five chain
in other categories, not just in transactions and
wallets. Okay. But the supply, by the way, the supply, this was designed so that,
you know, it goes to 16 million and then it halves, it goes to 8 million. Okay. And then it's
an 8 million a year and then 4 million for some period of time. And it's on a seven-year halving schedule.
The first seven years, it ladders down.
And all of that is because we need to create validators eventually get paid less and less.
And we need to create more economics, more people paying for chains or using scale to
pay for other things and burn.
Okay.
And so there's other part of this is like, how can we get more utility for scale?
Create, you know, also buy mechanisms,
but also burn mechanisms to, to, and so anyways,
third piece governance, you know, you know,
decentralization, community involvement
to push through these things is critical for our success.
There's a lot of people working on this.
If you don't feel an initiative to do it yourself,
please be on the lookout and go to these research pages
and these forums, okay?
And these things will be pushed forward.
And then eventually on snapshot,
there's a vote that goes out
and people vote on these things.
And there was just a vote to double the price of scale chains
that was successfully passed.
Okay, all right. Next question.
Next one. Okay. So I think this one might be a little bit shorter of an answer.
How does scale fit into the evolving L1, L2 ecosystem,
we were in a lost place
because we built for developers, not for narratives.
And people are like, oh, scale's a 1.5.
It's not a layer one, it's not a layer two.
That's not a good place to be.
So I think part of what we need to do
is really plan our foot firmly in a category and own it and, you know, be the best at it.
So I think that's a big part of, you know, the innovation that needs to happen is to help get us grow into a position that we are not in a nebulous state.
we're in a very clear, simple, straightforward state because simplicity is important for capturing,
you know, for just delivering value to people to understand and to educate people.
Yeah. Yeah. No, agreed. Agreed. Yeah. And the education part, definitely. Right. And it's one
of the major efforts that we in marketing are going to be
are going to be focusing on over the next weeks and months is making sure that we can find uh
entertaining yet simplistic ways to explain uh these complex uh mechanisms and blockchain terminology
um if you and you know do you know who does it really?
Sawyer.
Me and Sawyer every Wednesday.
We do a deep dive.
If you want to learn more about scale
on a technical point of view
and get more technical questions answered,
you can always join us in Discord every Wednesday.
And it's a great thing
that's really been helping the community as well.
You know, kind of that education.
That's what I'd say.
There's so much happening in Discord.
People talking, people communicating.
And, you know, get in the game.
Get involved.
100%.
Twitter is not the only place where stuff happens.
Cool.
Next question we have goes into a little bit on the uh
tokenomics side uh well there are a lot of questions about the economics regarding inflation
burn etc are there any efforts in that category to make changes yeah and i sorry I answered this as a prior question, but yeah, I already answered this one.
It's pillar three. We need to make sure that our economics and our process of establishing
these things is as decentralized and transparent as possible and that we're doing the most effective
thing and we're rolling it out in the best way.
But these are and, you know, let's not make mistakes.
Let's not.
I think I see a lot of projects make mistakes and like people are telling us to burn and
let's just burn these things.
And then they create a problem for themselves.
And then they, you know, burn the thing they had working for them, which may be, you know,
have been developer interest or something along those parts yes a lot of people and you know uh are reactionary
to whether it's news or global affairs um and they they take immediate action instead of really
stepping back and looking at the overall picture and
thinking, is this the correct kind of avenue we should be going down? And yeah, I think that's
the thing that really need that people need to think about is we look around the corners at scale,
right? We're not just looking at A to B we're looking at everything in between uh to see the
potential upsides downsides and and everything in between which is why you know it's a great thing
that we don't rush to make decisions or or you know try and front run announcements or or things
like that um yeah uh another question uh we have is uh where is the blockchain space headed? What is scale working
towards? Yeah, this one's pretty high level. So here's what I think like we're in the midst of
probably some sort of transformation and which I think will be very positive. And this is just my
own two cents. Again, not any sort of financial advice.
I'm talking about the broader market here.
I think that you're going to start seeing a lot more value flow into utility and fundamentals.
And I think people are going to start saying, all right, like, you know, this happened in
the, you know, late 90s, early 2000s, where the stock market was looked very much like
the crypto market.
And people were degening into this router and this thing and making all this money.
And then all of a sudden, it just evaporated because there's so many things that were just
hollow shells. They weren't building real products. They weren't producing. They weren't
creating economic value or they weren't capturing value. They didn't have product market fit. So I think there's going to be an evolution
into that zone. And that's also why I think, you know, our pillar one,
we need to grow into more, more areas of success, not only try to say, Hey,
wallets and transactions, but like, we need to get bigger TVL. We need to get more economic value. We need to
get people minting things on scale. We need more bridging coming into scale. We need to get more
value held in our bridges. And so those are, there's still, there's a lot of room for improvement
for us still. And I think, you know, the current areas of success and the new areas of success,
I think, you know, we're going to be getting into a market. I hope that really appreciates, uh, throughput as opposed to just like memetic narrative value.
Yeah. Agreed. Um, it's, uh, yeah, no, a hundred percent. Um, my favorite question of all time,
which never gets answered. What's the latest on any big partnerships uh no
no answer no just um well i think that the jambo um is moving forward um uh partnership um sequence
as you know one of the biggest partnerships to launch. Really excited about that.
That's live.
There's a lot happening there.
Also, the Unity partnership.
I have to say, this doesn't get enough attention.
Unity is like the biggest game company,
and they don't do this with anybody else,
and they do this with us.
And massive.
We have a whole educational series.
We're part of the publisher program there
that was huge and that is taking off and i think it's amazing um yeah for for those of you who
don't don't know about our partnership with unity um we are we were the first um partner in their
developer support program we are also their first and only blockchain
partner in the in that developer support program we do a multitude of different things with them
for example last month and this month um we're doing we have unity days right so
all of the game developers on scale
and that are interested on building,
they can come and sit down with the developers
of the Unity game engine themselves and talk to them,
learn about how to integrate scale
and blockchain technology into the game,
learn about building games on Unity, having that
direct line of communication with Unity themselves to help with bug fixing or marketing or even the
likes of game testing. And it is such an incredible opportunity for game developers out there that if they're not utilizing it, then I don't know why you wouldn't.
It's an incredible opportunity.
And if you are a game developer out there, come to the scale Unity Udays.
And we are also going to be doing some more activities with Unity
in the future as well.
So be on the lookout for that.
Awesome, awesome.
Okay, yeah, one other thing I just wanna say,
if you've heard big announcements in the past,
just trust that the second they can be pushed live
or like updates can come, they're gonna come.
A lot of these
are, you know, Hey, we land, somebody commits to build on scale. And then they, you know, we have
some, you know, some other co-marketing things and you just don't really hear about it till
because they're busy trying to get their product live. Okay. And that happens a lot. And some of
them, you know, it's, it's a wild world. Like you're never going to have 100% delivery on signed deals to like them actually like going live in this crypto market.
Projects fail and die.
But in general, I think we have a pretty good capture of high quality projects.
And then when we are working with them, you know, we have a good success rate of getting them over the line.
When we are working with them, you know, we have a good success rate of getting them over the line.
And I guess that kind of follows into another question, which is kind of regarding projects and grants and things like that.
And it's how is the foundation giving away these grants to potential projects?
And, you know, how can we guarantee that the tokens themselves aren't being wasted?
And how can we guarantee that the tokens themselves aren't being wasted?
Yeah, I think there's a big misconception of how Grantsmark work, I'd say, across almost
every project now.
Not all of them, but the vast majority of projects have really matured.
And I think we are probably the leaders in doing this and driving the market here.
But Grants used to just during like the 2021 heydays.
Everyone's like, oh, here's some money, here's some money. And you're just giving your token
out all over the place. And then it ends up, you know, just becoming this like sell pressure
without getting a lot in return. And so we were very early in, I think, innovating on how grants
work. And what we did is we decided to introduce milestones.
Okay. So our grant program is, the grants come from the Node Foundation. It's a nonprofit entity.
Their goal is to give grants to drive the purpose of the mission of the decentralized network.
And so when grants are given, if someone just signs, like, you know, you've got to go live to get things.
You've got to then hit milestones to get more things.
You've got to, you know, have success.
And so by building, introducing milestones, you can be, you know, as competitive as anybody in grants and sell your value, but also make sure it's not wasted. And so scale and the
Node Foundation doesn't waste grants because the people don't go live and they don't do things,
they don't produce, then they just don't get their piece of the pie. And I think it's fair
for developers building and it's where the market is. I mean, if you look at any of our competitors,
they do similar type things and it's a way to protect your treasury, make sure your grants are going to the developers that are
doing, you know, just doing what they say they're going to do. And Ethereum Foundation also shifted
to this a long time ago, and I think it worked well for them. We were, I think, one of the first
to make that shift. And it's, and, you know, and also, also like I don't think we ever really, you know, made bad decisions in that regard.
I think it was just the foundation didn't. Foundation's been, you know, very prudent about how grants are issued.
But if you see, you know, if you have fears about that, like, you know, I think what I'd say is like, you know, there's a very good framework in place
to ensure we're all protected.
Yeah, we have, yeah, there are some, yeah, you know,
Sawyer and Connor and those guys, you know,
they make sure that everything's working correctly
and people are doing the things, right?
Because, you know, there's no benefit to to us for them to not
you know finish their these milestones and get get their projects launched and and things like that
right so it it trusts us it's in our best interest to make sure that everything is is running smoothly
in that department um yeah um uh i guess uh this question i'm gonna i'm gonna i'm gonna assume
kind of comes from the current market um on certainty to an extent right you know with
lots of tariffs and stuff uh that's that stuff that's going on,
which is, you know, what is the state of the project's treasury?
Yeah, I think we're very fortunate to have a huge treasury still.
And, you know, it's part of that is that we didn't grow up, you know, this is a project from, you know, that launched in 2018
you know, that launched in 2018 and went live in 2020,
and went live in 2020.
there wasn't 40% of the treasury given away in airdrops
that all just like ended up on the market the first month.
And so we're fortunate to have a big treasury.
There's a lot of scale.
We're going to be able to keep issuing grants.
We're going to keep being able to be competitive to win deals.
And then, you know, how quickly that gets spent as it goes to the
core team really depends on the growth plan, you know, as far as there's a lot of vendors that
provide services to the foundation, one being scale labs, but, you know, we just right size that for
what the goals are. And, but yeah, I think part of this is like, you know, good and bad and that we missed
that wave, uh, bad because a lot of people captured a lot of TVL through these airdrop farming. Um,
but the upside is that we still have a big treasury to run a lot of these campaigns
when we launch those initiatives. Yeah. Yeah. New initiatives we talked about.
initiatives yeah yeah new initiatives we talked about yeah and you know that goes back to you
know how we are so kind of particular with our grants as well right you know you don't just
willy willy nilly throw throw throw skl at every everyone and everything for for pie in the sky
ideas right um we want to make sure that people are building and they're building right.
And, you know, so that does kind of go on to
how are BDFs looking, you know?
What are we, how are we looking there?
Yeah, so this is a kind of a fun,
I think, evolution that's been taking place.
So number one, when you're new,
you just need, you just try to get anybody possible to just go on chain.
Our competitors are doing this now. They're like, oh, we have a new product. And how can we just get somebody on board? And most of them just pay out the ears in grants just because they don't
have anybody using their product. And if you're a developer,
you have a question, do I use something new or do I use something established? And we actually
hired a very senior product marketer, someone who ran product marketing at Unity, actually,
and he did all these developer interviews and talked to game devs and DeFi devs and all these
other devs. And the number one thing they valued over anything was,
is it proven already? Because they're like, you know, I'm putting my entire business on this.
If it doesn't work, I'm screwed. And so I tell you this background because it really talks about
our evolution. And we had so many, you know, we just really were like, you know, going for quantity.
And we got some really great applications in the mix of this. But then where our business development efforts have really shifted is that as we get bigger and bigger and more robust,
we want to target more of our growth around quality and around the best teams out there.
And the team people joining scale,
like these are awesome teams that are, you know, that are going to build on scale.
And also we have a real target around getting, you know, working with projects that have funding.
And so that's one of the biggest advances is that like the percentage of projects that are already funded is huge. Now in blockchain, you want to work with people that aren't funded yet too,
because that's how you get really good teams and you get them before your competition gets them. Okay. So the
good teams that don't have funding, we want to grab them and give them a great place to build
and a great community to interact with. But, but, you know, again, I'd say we're really on this,
like really fun increase in quality phase. And we've earned the right to do that because we have proven
skills of proven product yeah agreed and you know like uh for those of you who don't know
me personally i i i'm a gaming background as you can see by the astronomically number of
childish things behind me um but you know it's it's great i got like i got like sawyer in my in my dms going
like yeah what do you think about this game and it's like he just sends me them like daily just
like game after game after game and it's it's great to see like what is what is coming through
the pipeline from a bd perspective not only you know games that are you know getting getting
accepted or but games that are you know interested in applying you know it's it's
every it's everything from across the spectrum and you know we you continue actually to speak
on that we did also launch our indie game accelerator program which was an incredible
initiative uh brought up to help bring web 2 developers traditional gaming developers into the world of web 3 and we've
had some incredible applicants so far and the team is going through that process um to to to
getting people signed on um and it's it's yes it's been incredible to see like we can as a technology, we can be attractive to Web2 developers,
whether it's in gaming or other spaces,
because of the way that the technology and the business is positioned.
It gives us a very, very good, unique selling point to these potential partners.
But yeah, there's many more games to come
which is great for me um a big question oh there's really good games and i'm excited too about you
know our future evolution of you know making sure that the network really captures more value and
gives them more value um it doesn't leak value. It's almost like oftentimes we have this like,
you know, you have this pocket full of quarters
and you get home and it's like,
there's a hole in it and they all leaked out
and rolled down the hill to Ethereum.
Oh God, yeah.
Nice, yeah.
Another question,
which has been on the tips of the tongues of many people across the Twittersphere, which we kind of spoke a little bit about, but what is Byte Protocol?
Yeah. And so by the way, this Byte Protocol is still an engineering initiative.
It's, you know, they haven't seen, you haven't seen a bunch of press and releases about it yet because it has to live in a product.
It has to live.
And so those decisions on phase one, one decision will be how does bike protocol come to life?
But that being said, we can go market it to developers now, educate developers.
It's an open source technical framework. It's not
in itself an end product. It's almost like if you buy an engine, well, in that engine, there's
a very specific motor that, and it's a core component to an engine. And it can upgrade
our engines or help us build a new engine. Byte protocol, thanks to the fact we have some just genius people working at scale,
Stan and, you know, all the developers on the core team and a lot of people getting
involved in from a community perspective, there's some really smart people.
And what Byte is, Byte actually encrypts the mempool, i.e. it makes it so there's no MEV or front running on chain.
Okay. And what's happened is people have gotten used to the fact that every blockchain today,
you submit a transaction, you're getting sandwiched attack, meaning you're always losing
like, you know, some percentage of slippage. Maybe you're losing
like a half a percent of every trade. And people just think it's normal. Like, oh, half a percent
of every trade. There was somebody last month that swapped $220,000 of USDC into USDT.
And that person ended up with 5,000 in USDT. They lost 215,000
because they didn't set the slippage.
They did it on Uniswap,
but they didn't use Uniswap UI.
And so the slippage wasn't set
and they got sandwiched attacked
and somebody basically did,
you know, so you can do all these games.
You can also get front run.
Like you do a trade
and the validator is like,
oh, I'm actually going to take that price
because the price changed.
I have like 15 seconds. I have a bot and it puts my price ahead of yours. And then it sells
it back to you on the next block or it like essentially lets you do it after. And so they're
getting ahead of you. Now, maybe they're only getting a half a cent or like some small fraction,
maybe it's only half a percentage better than you or 1% better than you. But getting a half a cent better, like, you know, some small fraction, maybe it's only
half a percentage better than you or 1% better than you. But if you build a bot to do that,
and it happens over and over and over, I mean, it's estimated there's just billions and billions
of dollars. We're talking about the billions lost that are just siphoned out. Some people try to say
this is positive because like, oh, that attracts people to run validator nodes, because then they can run these products to basically take money from end users that are
trading. And our feeling is like, well, can you do that on NASDAQ? Can you do it on NYSE? No,
you can't do that. Like you can't, oh, you have this trade. Like I see that I'm going to like
put my trade ahead of yours. Oh, you have this trade, but you didn't set the slippage. I'm going
to take all your trade. You just can't do that. And so, so we're able, we're with Byte, we're
going to be able to inject that into a blockchain and make it impossible to front run anyone or
sandwich attack anyone. Imagine you like you're, you're about to go buy a house or something.
And you, you know, you got, got you got your your wire transfer for however much
a house is i don't i don't know like 500 like let's say 500 000 or something you get hit with
something like that you lose like even like 10 you know on it would just never happen in the in
the real world like we need these mechanisms in place for institutions and and you know, mass adoption to really take it seriously.
Otherwise, you're not going to see somebody come in and go, I'll do a transaction here for,
but there's a chance, the 1% chance I'll lose, you know, a couple thousand dollars.
It just wouldn't happen. And it's almost as a, as an industry, we need to mature and
stop thinking like the people that say like the MEV is good for, you an industry we need to mature and stop thinking like the people that say like
the mev is good uh for you know we need to stop thinking about what's good for the small percentage
of people that are in the space right now and start thinking about what is good for
and how blockchain can be used across the world yeah and an mev is a lot like you know it's a problem
people don't know they have um and they're used to living with it it's like you know how much of
a problem was it like every day having to light candles in your home before electricity was around
you just did it you know your problem was, how can I get better candles that cost
less and give me more light and burn slower? And people are trying to do that. But instead,
all of a sudden you have electricity and it's like, whoa, okay. And hey, this is not going
to be as big of an invention as electricity was. But what I'd say is if it's successful,
What I'd say is if it's successful, it could make blockchains without MEV resistance obsolete.
Okay?
So it's a big play if it's successful.
All right?
And that's why we have to play bigger.
And the question is, how do you take Byte and make the biggest impact possible?
And that's where the developers' heads are right now that are you
know really digging in to and providing input to the strategy yeah yeah it's um yeah there are
the develop whenever i hear the developers talk i just feel like i have three iq like genuinely
like even in like tea like the weekly team meetings when everyone's talking about the, you know,
like the engineering stuff, I'm sitting here like,
I don't know what's being said.
Let's jump in.
We've got a couple of questions left.
I know we're a little bit over,
so I'm going to try to speed this up a tad.
Is what is being done to improve Scales Office
slash appeal with changing demand?
You know,
this is,
I think answered,
you know,
just for efficiency,
like we got to do those three things.
Yeah.
And we got to,
we've got to do them well.
And also we got to do them fast.
I think it has to come together in the next,
you know,
like we can't rush it just tomorrow because, but in the next month or two, I think we need a real, you know, cement the strategy, get buy in, get everybody on board and implement and launch it.
What is scale doing to drive chain payments and revenue?
Which does go back to our governance vote from a couple of weeks ago,
which did indeed double.
We double chain pricing and getting more people to pay.
The other thing is that there's a proposal coming out for these like
performance chains that are smaller.
They're much smaller than the hubs and the current
chains, and they're going to cost less, but we can maybe sell a lot more of them or the network can
sell a lot more of them, not we. And we have a ton of interest around those. And so they're just
more, they're smaller, but they're meant for a single applications and businesses. And, you know,
they're pretty amazing, I think. And because of all the improvements that are launching in scale,
we're able to like, you know, do more with less essentially. So we can partition less resources
from the nodes, create smaller chains, but then create these performance chains that are for apps.
Yeah. Stay tuned for that.
If you want to, that'd be a great opportunity
to get involved in a proposal to be like,
weigh in and say, yeah, this is great.
Let's do this.
Or no, this idea sucks.
Let's do this.
Like, you're a smart person.
You want to give input?
Like, please, it makes the project better.
100%.
We have a kind of like a scaled forum
where a lot of these ideas are kind of spoken about prior to
the voting process so you can make your feet you can make your feelings heard there doesn't
you know you don't have to have skl to to to do it um and i know soya loves to uh talk to people
in in those forums it's his favorite place.
I guess... I think that's
good. I mean, the last one here is
planning to focus on economics.
Do we get anything else?
I know we're over. Do we get anything else that came in live?
We got a couple.
We got a couple that came in.
I'm just looking.
Anything we haven't addressed because
i know we i like i said i i wanted to give a big update and kind of hit a lot of topics with each
answer listening i went overboard i just want to make sure i'm getting as much information as
possible out yeah um yeah there was one thing that i i do think it is worth to kind of reiterate um this was from ak7 which
said all alts are getting crushed right now not just skl as um how may how like how is it that
the project's going to stay afloat and i guess that's kind of like the you know we have our
treasury is good yeah and you know hey we've got to see there's a lot of things out of our control
we're going to control what we can.
And I think part of it, too, is like, how much money do you spend in certain markets? Like, does it make sense to spend an enormous amount on, like, really discretionary marketing stuff when everyone's like, tariffs, tariffs, everything they're talking about on the timeline?
And so I think, you know, it's a, you know, one, thankfully you have a huge,
very huge treasury and two, like, you know, I think just calibrate, you know, business plans,
optimize towards, you know, like acute conditions of the market. And like, you don't want to change
budget every week or month, but you're having like quarterly perspectives on budget is a really,
having like quarterly perspectives on budget is a really,
I think a really smart business practice.
I think a really smart business practice.
Yeah.
Agreed.
Agreed.
I think I saw,
I've seen a lot of kind of questions about token unlocks and things like
that.
I will,
I do think there is a slight and we are trying to get it fixed,
issue with the likes of CMC and CoinGecko,
where they're not completely,
the information that they have isn't accurate, right?
So I just want to say,
if you guys want to see the direct,
I'm going to put it in the description of this
after the video has
gone live but i'm gonna i'm gonna say it i'm just gonna say the the link here and then i'll also
reply to this tweet as well in a second which is supply.scale.network forward slash supply
forward slash index dot html go there for all your token related information uh tokenomics
related information that is your source of truth it's directly from the source um so i just wanted
to kind of put that caveat well core we got to just make sure we you know talk to those partners
we try to get them to update that because if people are operating on wrong information it doesn't help them or us
no yeah i yeah at all yeah yeah it's it's it's it's not great and um yeah i like i said we will
i'm going to put the comment in a second after we finish i'll reply it to everything and um we'll we'll be making sure we're gonna try and get all of that those items fixed um
uh yeah uh and then final one that says um uh are we gonna ever accept meme projects
that's from theo yeah i think i think meme projects are great because in a lot of ways
they're the next generation of nfts okay um they're communities that you know but they're
more egalitarian everybody can buy one uh you could buy you know a dollar worth or a million
dollars worth and an nft you kind of can only get in if you can afford the floor. And so I think it'd be
great. But part of that is we need more value and TVL and scale to have meaningful places. But I
think memes too are going to start living like in concert with games and other products. And they're
going to start being attaching themselves to more utility. And'll see memes be you know their communities
like get more involved with products which is good for us it's good for scale so uh so yeah i'd love
to see us really with you know this three-point plan make a much bigger impact on you know not
just d5 but in memes also which are in a strange way are very DeFi-esque.
Yeah. Yeah. And the other thing as well, you know, I did previously, not anymore, dabble in the meme coin degeneracy. And one of that big things was, you know, MEV, right? That was the most time you'd ever get hit was through MEV. So with Byte Protocol
and some MEV protection, who knows, maybe we can start to siphon the meme projects with some MEV
protection. Yeah, Jack, it's been an absolute pleasure.
Is there anything further you would like to say to the community, to the people watching across
the interwebs before we sign things off? Yeah, I would just say that, uh, you know,
it, like I see a whole range of emotions happening and like, love it. Hey, all that.
We have so many staunch supporters, um, who are super optimistic and, you know, love you,
appreciate you. Like, you know, we're working our asses off at the core team. You know, we want to
win. We're winners. Um, and you know, there's people who are upset and Hey, I also get you to
like the market is getting crushed and you want to make sure things are going well. Like there's only certain things that are in our control and the
things that are under in our control, we take very seriously. And, you know, and so we always
strive to do better in every way. And I think, you know, point three with like getting more
governance, more community involvement, like I would just love to see, you know, an even greater,
and I think as we roll out this plan, just, you know, greater involvement, you know,
updates, transparency, if there's ways you think you could be informed better, like, hey,
you know, there's so many updates that come from the team. But if there's things that you think
would be more helpful, tell us like we're, we, we're all in this together, okay? You know,
it's a decentralized project.
If you hold a scale token, you're on the team
and we want everyone on the team to feel like they're,
we want everyone's help.
We want everyone to make sure they're,
they also feel updated and engaged.
Yeah, I think that's like the really important thing
is it doesn't matter how big of a holder you are
or how small of a holder you are,
or if you're just in the Discord, coming to the game nights,
talking to us on Twitter,
every person's feelings and opinions, they do matter, right?
And that's one of the most important things for me specifically.
And then I also know for
sawyer on the develop you know he is like the you know community dev um you know is is we want to
talk to you guys if you have worries or concerns or things like that just come and talk to us and
we will ha we will happily take the time to to respond to you and and we will talk to you um
to respond to you and,
and we will talk to you.
and because a project,
especially within web three is only as good as its community.
And that is,
you know,
at least my number one objective is to,
is to make sure scale has the most kick-ass community.
yeah.
Awesome.
Thanks everybody.
Thanks very much.
Thank you everyone for tuning in
and we should do it again sometime
let's see it
we'll do it with Stan next time
hell yeah
we'll do another one
okay
sounds good
thank you all so much for tuning in
and we'll see you again later
