Chainlink Decentralized Oracle Protocol (LINK) has released details on its long-term goals and new road map June 7, which will lead the network to the “Chainlink Economics 2.0” era.
Economy 2.0 introduces token staking to help secure the network and reward user participation.
“Staking is a key mechanism that aims to bring a new level of crypto-economic security to Chainlink, where crypto rewards and penalties are applied to further incentivize the network to function properly.”
Following the news, buying pressure sent LINK’s price up 24% to a peak of $9.02. However, on June 8, LINK traded flat with a slight sell bias, retracing its price back to $8.41 at press time.
New era for Chainlink
In a tweet highlighting the issue, Chainlink stated that staking is the beginning of an economy 2.0 era that will bring “long-term security and sustainability.”
The bet marks the beginning #Chain link Economy 2.0, a new era of long-term security and resilience for Oracle networks.
In this update, we define the long-term goals, roadmap, and initial implementation of staking on the Chainlink network.https://t.co/WJkoUzPA0i
— Chainlink (@chainlink) June 7, 2022
BUT Blog post goes into more detail about the four long-term goals that should be the principles of success in this new phase of Chainlink’s development. Briefly, they are:
- Increase the security and confidence of users in the protocol Networks will be required to block LINK tokens “as a service level guarantee with respect to network performance.” Failure to comply with SLAs will result in the forfeiture of a portion of the locked token for further distribution.
- Expanding Community Participation Stakeholders should monitor oracle service performance standards and be rewarded for reporting services that do not meet these performance standards.
- Create sustainable rewards – the creation and distribution of staking rewards through “own token issuance” or the existing LINK offer, which will decrease over time, “user service fees” obtained from the payment for the use of Chainlink services, and the “Partner Growth Program”, which refers to incentives. from related protocols and DAOs participating in the program.
- Empowering Node Operators – introduction of a node reputation system to help in node selection and encourage node operators to use a reliable and secure service.
Staking will be implemented in stages
chain link bid deployment strategy will follow the same route as its price channel rollout, which started with a single pair managed by three nodes and expanded to almost a thousand price pairs currently managed by over 50 nodes.
“[Price Feeds] has gone from a single ETH/USD price feed on Ethereum managed by three oracle nodes to supporting nearly a thousand price feeds supported by over 50 top node operators across twelve blockchains and layer 2 solutions.”
This approach will allow for a phased release of multiple versions starting from the initial release of v0.1, introducing the reputation structure and notification system mentioned above.
The new roadmap shows v1 and v2 releases, but no exact release dates for those releases.
Chainlink said the v0.1 release will offer a 5% annual staking reward. However, as v1 and v2 are rolled out, rewards are expected to increase based on user fees and the length of the commitment period.
Credit : cryptoslate.com