Skinning was added in v0.15. It adds an extra layer of game play where the player must prepare animals prior to cooking. While skinning is currently not tied to any skill system, it is planned to have success and fail states in a future version.
In order to skin an animal, such as a fish, the player must equip a refined knife. The player must then use the knife on the animal, and the animal corpse will vanish, leaving a portion of meat behind. This meat may then be put on a campfire or one of its upgrades in order to be cooked. In a future build, skinning is planned to also provide resources such as leather and sinew.