Chainlink Hits Four-Week High After Staking Roadmap Update

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The price of LINK, the token that underpins the decentralized oracle network Chain linkhit a daily high of $8.86 on Wednesday, a level last seen on May 10.

Although a minor correction took LINK to $8.41 at press time, it still represents a solid 10.42% increase over the past 24 hours, according to CoinMarketCap.

It also makes Chainlink’s token one of the best performing assets of the past day, as the broader crypto market continues to see bouts of volatility.

With a market cap of over $3.9 billion, Chainlink is currently the 21st largest digital currency in the industry.

Chainlink Economics 2.0

LINK’s latest price action follows the release of its updated roadmap for implementing staking, a feature that would enable a system of rewards and penalties designed to incentivize smooth network operation.

First described in an April 2021 white paper and followed by a January 2022 teaser, the idea of ​​earning passive income from staking on Chainlink is to give ecosystem participants, such as traders of nodes and community members, the ability to increase Oracle’s security guarantees. services by backing them with staked LINK tokens.

The initial implementation of Chainlink, called v0.1, is scheduled for the second half of 2022 and will mark the beginning of Chainlink Economics 2.0, the project’s “new era of sustainable growth and security”.

Highlighting the deep integration of Chainlink’s oracles with leading crypto applications, the company said that “the increase in oracle security and user assurances brought about by staking will be key to helping the economy scale.” multi-chain smart contracts to eventually secure trillions of dollars”. dollar markets in major global industries. »

According to Chainlink, the rollout of the staking mechanism will be similar to the rollout of Chainlink Price Feeds, the company’s popular price oracle network for decentralized finance (Challenge) apps.

The latter started with a single price feed for ETH/USD operated by three oracle nodes and has grown to support nearly a thousand price feeds powered by over 50 node operators across twelve blockchains. and Layer 2 solutions.

Currently, Chainlink is trusted by some of the most valuable DeFi apps, including AaveCompound, dYdX, Synthetix, Nexus Mutual, etc.

The most recent integration took place last week, with Solana adding support for Chainlink price feeds.

Chainlink Staking Rewards

According to Chainlink, the initial staking pool will start with a total size of 25 million LINK tokens, aiming to grow to 75 million tokens, based on demand, in the months following launch.

The v0.1 staking pool will also be limited in size, providing “a fair entry mechanism […] to help ensure the participation of a wide range of community members. »

“This entry mechanism will seek to prioritize long-term token holders, who are most likely to actively participate in the alert mechanism,” Chainlink said.

The company added that “stakeholders participating in v0.1 will have their staked LINK locked at least until the release of v1, where they can then choose commitment periods of varying lengths.”

Other than that, separate allowances will be offered to node operators who actively service Chainlink data streams.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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