Staking for decentralized oracle network Chainlink is now live on Ethereum for early access users, which is one of the most highly anticipated events for its network. After being open fully on Dec. 8, holders of its native token LINK will be able to contribute to the network’s security and receive appropriate rewards.
Previously, Chainlink token holders had been limited in how they could put their LINK to work and receive rewards for securing the network. After staking is enabled, holders of LINK can contribute to the network’s security and receive rewards by doing so.
Currently, Chainlink is the most widely used oracle network in the crypto sector, according to Dune Analytics. Oracle networks are critical blockchain infrastructures allowing developers to securely use real-world data in their applications and enabling the majority of on-chain use cases.
Initially, Chainlink would launch a beta release, accessible for staking to secure the Ethereum ETH/USD price feed only. The pool is capped at 25 million LINK tokens, which is about 2.5% of the total LINK supply with a value of $177.5 million, at the time of writing. Chainlink is set to allow staking for other services in the future and is using this beta to trial and improve future releases.
At first, staking is open to node operators who power the network and members of the community qualified for early access. Users can stake up to 7,000 LINK tokens and start receiving rewards with a 9-12 month lock-up period. Meanwhile, the next version of staking is expected to launch in that timeframe, so stakers can either unlock their tokens or migrate them to the new version.
Staking is set to be open to the public on Dec. 8. Staking is the first step in a “new chapter in Chainlink’s life” and its Economics 2.0 plan, which aims to increase the network’s security and revenue, said Chainlink co-founder Sergey Nazarov.
“It’s a feature that while useful on its own, is actually part of this larger Economics 2.0 plan. I think that’s the thing that people don’t fully get,” he told The Block.
Economics 2.0, a plan with several initiatives including staking, aims to solidify Chainlink’s market dominance in the oracle sector and make it a “global standard.”