Chainlink Prepares to Launch Staking on Ethereum

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Blockchain ora­cle provider Chain­link is prepar­ing to launch stak­ing on the Ethereum net­work. It is part of a long-term sus­tain­able eco­nom­ic pro­gram for the blockchain network.

On Dec. 1, Chain­link pro­vid­ed an update on its stak­ing ini­tia­tives. Addi­tion­al­ly, the ora­cle provider con­firmed that stak­ing would go live on the Ethereum main­net on Dec. 6.

Chain­link stak­ing was orig­i­nal­ly on a 12–24 month lock­up peri­od. How­ev­er, the team has dis­cussed it with the com­mu­ni­ty and node oper­a­tors. The out­come is a more rapid iter­a­tion with more fre­quent releas­es. Each release will have a “con­densed scope focus­ing on key fea­tures,” it added.

“As a result, the next ver­sion of Stak­ing (v0.2) is now planned to launch in 9–12 months, at which point v0.1 stak­ers can unlock or migrate their staked LINK and rewards.”

The launch of beta Chain­link Stak­ing (v0.1) on Ethereum is only avail­able to address­es that qual­i­fy for ear­ly access at the moment. These will be able to stake up to 7,000 LINK (worth around $53,270) in a capped stak­ing pool. Eli­gi­bil­i­ty is deter­mined by on-chain and off-chain activ­i­ty, which is ver­i­fi­able by the user’s wallets.

On Dec. 8, the stak­ing pool will open to gen­er­al access for all oth­er LINK hold­ers to par­tic­i­pate. Addi­tion­al­ly, the ini­tial total pool cap is 25 mil­lion LINK, accord­ing to the Nov. 30 blog post.

The stak­ing v0.1 pool sup­ports the ETH/USD data feed on the Ethereum main­net. Stak­ing rewards will be issued to users par­tic­i­pat­ing in a decen­tral­ized alert­ing sys­tem. The sys­tem alerts if the data feed has not met “cer­tain per­for­mance require­ments regard­ing uptime.”

The stak­ing ini­tia­tive is part of “Chain­link Eco­nom­ics 2.0.” It enables LINK token hold­ers and node oper­a­tors to earn rewards for “help­ing increase the cryp­to-eco­nom­ic secu­ri­ty of ora­cle services.”

In a keynote at Smart­Con 2022 in Sep­tem­ber, Chain­link Co-Founder Sergey Nazarov said: 

“We also expect that as stak­ing secu­ri­ty becomes more in demand, the staked sup­ply will con­tin­ue to increase.”

He added that Chain­link Eco­nom­ics 2.0 is a way for the net­work to scale its expan­sion and secu­ri­ty across mul­ti­ple chains and ser­vices to thou­sands more apps.

LINK Price Outlook

Chainlink’s native token, LINK, has per­formed well recent­ly, gain­ing 23% over the past fort­night. LINK prices are cur­rent­ly up 2.2% on the day at $7.62 at the time of press, accord­ing to CoinGecko.

On Nov. 22, LINK hit a mar­ket cycle low of $5.60 but has been recov­er­ing strong­ly. Nev­er­the­less, LINK is still down 85.6% from its May 2021 all-time high of $52.70.

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.



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