In about 4 hours Chainlink will conduct its v0.2 upgrade and introduce the Chainlink Staking Platform, with a pool of 45m LINK.
This update comes after the initial beta version of Staking in v0.1 was released last year, with a 25m LINK staking pool.
How will Staking v0.2 work?
Chainlink v.02 will be a fully modular and upgradable Staking platform providing:
- Unbonding Mechanism (instead of locking up staked LINK) providing greater flexibility for stakers while maintaining a non-custodial design
- Slashing of node operator stake, introducing new cryptoeconomic security for the oracle services and the Chainlink protocol
- Modular architecture to support future improvements and updates iteratively
The unbonding mechanism introduces a 28 days cooldown period to withdraw staked LINK, and is introduced to make sure:
- Staking pool is stable over a long period of time
- Ensuring there is sufficient staked LINK to be slashed in case of a valid alert
Driving Value to Token Holders
This is THE most awaited upgrade from Chainlink, providing more utility to the LINK token, and driving value back to token holders.
Below is a picture of a LINK holder waiting for staking since 2017.
Staking enables ecosystem participants to earn yield for helping to secure the network and back the oracle services provided by Chainlink with staked LINK.
The introduction of staking in Chainlink represents a significant development for LINK token holders for several reasons:
- Enhanced Network Security and Trust: staking contributes to increased cryptoeconomic security by having node operators lock up LINK as collateral, ensuring they have a vested interest in the network. In case of any malicious or incompetent action by node operators, the Chainlink staking protocol supports the ability to slash a portion of their staked LINK. This alignment ensures…