Chainlink Staking Mechanism Coming Soon, LINK Price Rallies
Oracle service provider Chainlink has unveiled a new economic roadmap for the platform by introducing the much-awaited staking mechanism to the blockchain. In the announcement, Chainlink said that the staking mechanism will introduce operational efficiencies of its oracle network and the blockchain.
Simultaneously, it will reward all the LINK investors. Besides, Chainlink also unveiled the four major long-term goals it seeks to accomplish with its staking mechanism. This involves:
- Increasing the Crypto economic Security and User Assurances of Chainlink Services
- Enabling Greater Community Participation in the chainlink Network
- Generating Sustainable Rewards for Long-Term Users
- Empowering Node Operators to Acces Higher Value Jobs Through Staking.
Details of Chainlink Staking
Chainlink said that its staking mechanism will continue to evolve over time as its Oracle network continues to expand. The initial goal is to create a simple and secure foundation for staking. Later, it will continue to expand its scope based on the feedback received.
The rollout of Chainlink’s staking mechanism will be very similar to its Price Feeds functionality. This will allow identifying risks and opportunities at an early stage of implementation before scaling.
The initial version v0.1 of the Chainlink Staking release is projected for later this year. As per the announcement:
- The initial v0.1 release of Chainlink staking is focused on introducing a reputation framework and alerting system.
- The initial staking pool in v0.1 will be capped in size. It will have a distinct allotment to community members, node operators, and the coordinator of oracle networks. As Chainlink notes: “The pool will start with an aggregate size of 25M LINK tokens, with the planned goal of scaling to a pool size of 75M LINK tokens in the months after launch, based on demand”.
- In v0.1, it’s expected that native token emissions directed to stakers will target a base level of annualized staking rewards of up to 5%.
LINK Price Jumps 12% As Whales Capitalize
In the last 24-hours, the LINK price is up by over 12% and is currently trading at $8.46. Chainlink’s native crypto LINK has been a part of the broader market correction this year.
However, it seems that whales have been capitalizing on this correction! In the last five weeks, Chainlink whales have added LINK in a major quantity. On-chain data provider Santiment reports:
Chainlink has pumped +9% in the past 2 hours, and accumulating whales are capitalizing. After dumping began on March 30th, they began accumulating again after prices dropped in early May. They hold 25%+ of the supply for the 1st time since November.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.