On June 7, the Chainlink team published its “Long-Term Goals, Roadmap and Initial Implementation”, outlining the following steps for the Data Oracle blockchain project.
The blog post referred to “ChainLink Economics 2.0” with a focus on staking as part of an effort to scale the system and integrate more blockchain networks.
Staking is a mechanism that brings a new layer of ‘crypto economic security’ to Chainlink, it explained. The same is true for most proof-of-stake blockchains that reward stakers for helping secure the network.
marks the beginning of stacking #chain link Economics 2.0, a new era for the long-term security and stability of Oracle Networks.
In this update, we define the long-term goals, roadmap, and initial implementation of staking in the Chainlink network. https://t.co/WJkoUzPA0i
— chainlink (@chainlink) 7 June 2022
focus on staking
Chainlink, which launched Oracle on Solana earlier this month, has four long-term goals, but the basic principle is explained as follows:
“Link’s stake in turn increases the ability for nodes to obtain jobs and earn related fees within the Chainlink network.”
The primary goal of staking is to enhance the security and user assurance of Chainlink oracle services. The LINK token has been discontinued as a “service-level guarantee around network performance,” it explained. In addition, incentives and penalties such as slashing enable Chainlink nodes to consistently generate accurate oracle reports and deliver them in a timely manner.
The second goal is to encourage community participation and participation. Additionally, node operators can create a delegated staking system similar to Tezos.
Third, Chainlink staking aims to generate sustainable rewards from actual long-term use. It expects long-term growth as a result of a large portion of the rewards coming from “non-emissions-based sources”.
The ultimate goal is to “empower node operators to access high-value jobs by staking.” This means that over time, node operators will have more opportunities to participate in the Decentralized Oracle Network (DON), thereby increasing the security even more.
The rollout of the staking mechanism will be gradual, evolving as its oracle feed did from a single feed on ETH/USD to thousands. An initial v0.1 release is anticipated later this year, with planned upgrades to v1 and v2 of additional functionality.
In February, Bank of America gave Chainlink a major plug, saying its ordeal could disrupt key industries.
Link price up 12%
Chainlink’s native coin reacted strongly to the roadmap update, gaining 18% on the day before retreating slightly. This time around $7.40 from yesterday, LINK reached an intraday high of $8.83 during the Asian trading session on Wednesday morning.
At the time of writing, the coin is trading at $8.40, up more than 10% over the past fortnight. However, the longer term trend remains bearish as LINK is down 84% from its May 2021 all-time high of $52.70.
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