The developers of the Chainlink decentralized oracle network announced the introduction of the LINK token-stacking mechanism in the second half of 2022. The team noted that the move will improve the security of the ecosystem as it scales.
According to the statement, the stacking mechanism will fulfill “four long-term goals.”
Increase network security and provide assurance to users;
Ensure that community members are engaged with Chainlink;
Generate and distribute rewards for stackers;
create a reputation structure for selecting nodes in decentralized oracle networks.
According to the developers, the first stage is to create “a solid and simple foundation to gather feedback.” Over time, the scope of application of stacking will be expanded, and its structure will become more complex.
A total of two versions of the mechanism are envisaged. The first is scheduled for release in late 2022. At launch, it will consist of reputation and notification systems for steaking participants. In the future, the team will connect additional features like slashing.
The initial pool of steaking rewards is expected to be limited to 25 million LINK. It is planned to scale up to 75 million LINK within a few months.
The v0.1 mechanism provides an annual reward for participants of up to 5%. Once the next version is launched, the reward for staking will vary depending on network fees and the asset lock-in period.
LINK quotes responded to the developers’ announcement with growth. Over the past 24 hours, the token has risen 11% and is trading near $8.4 at the time of writing.
Recall that Bank of America called Chainlink one of the drivers of the growth of blockchain funds in the DeFi sector.
