March 28, 2024

The Chainlink team announced the launch of staking. LINK token rose by 11%

The Chainlink team announced the launch of staking. LINK token rose by 11%

The developers of the decentralized oracle network Chainlink announced the introduction of the LINK token staking mechanismin the second half of 2022. The team noted that the move will improve the security of the ecosystem as it scales.

“As Chainlink continuously integrates intonew blockchains and includes support for new oracle-based services, it is important to improve the security of the network to accommodate the growing volume of value in applications. […] Staking is a key mechanism that will bring a new level of cryptoeconomic security to Chainlink, where rewards and penalties incentivize the proper operation of the network,” the publication says.

According to the statement, the staking mechanism will achieve “four long-term goals”:

  • improve network security and provide assurance to users;
  • ensure the involvement of community members in the work of Chainlink;
  • generate and distribute rewards for stakers;
  • create a reputation structure for selecting nodes in decentralized oracle networks.

According to the developers, the first stage isthe goal is to create “a solid and simple foundation that will allow you to collect feedback.” Over time, the scope of staking will expand, and its structure will become more complicated.

In total, there are two versions of the mechanism.The release of the first is scheduled for the end of 2022. At launch, it will consist of reputation systems and notifications for staking participants. In the future, the team will enable additional features like slashing.

The Chainlink team announced the launch of staking. LINK token rose by 11%

The Chainlink team announced the launch of staking. LINK token rose by 11%

Potential roadmap for staking implementation. Data: Chainlink.

The initial pool of staking rewards is expected to be capped at 25M LINK. Its volume is planned to be scaled up to 75 million LINK within a few months.

Mechanism v0.1 provides for an annual remuneration of participants in the amount of up to 5%. After the launch of the next version, the staker reward will vary depending on the network fees and the asset lock-up period.

What is Chainlink (LINK)?


LINK quotes reacted to the developers' announcement with growth. Over the past day, the token has risen in price by 11% and, at the time of writing, is trading near $8.4.

The Chainlink team announced the launch of staking. LINK token rose by 11%

The Chainlink team announced the launch of staking. LINK token rose by 11%

LINK/USDT Hourly Chart on Binance Exchange. Data: Trading View.

Let us remind you that Bank of America named Chainlink one of the drivers of growth in the volume of blocked funds in the DeFi sector.