Chainlink, a leader in the decentralized oracles sector, yesterday unveiled the details and roadmap of its upcoming staking program. Holding LINK will strengthen the network’s cryptographic security and earn holders a 5% APY.
Yesterday’s post on the project’s official blog states that “a new era of sustainable growth and security – Chainlink Economics 2.0 – begins with staking.” The overarching goal is to enable community members and network node operators to support the safety and assurances of oracle services by engaging their LINK tokens. Moreover, this is one of the key milestones on the road to making Chainlink the global standard for the oracle industry.
The implementation of the first version of the staking (v0.1) is planned for an unspecified date in the second half of 2022. In addition, the roadmap presented in the statement includes plans for further expansion.
Roadmap for Chainlink Staking / Source: blog.chain.link
4 long-term goals of Chainlink staking
The document outlines 4 goals that a staking program is expected to achieve. The authors point out that these are long-term plans and the details of both staking and the other improvements will change in the future.
The 4 long-term goals of Chainlink staking are:
- Increase the crypto-economic security and user assurances of Chainlink services
- Enable community participation in the Chainlink network
- Generate sustainable rewards from real long-term use
- Empower node operators to access higher-value jobs by staking
All of the above goals were already outlined in the updated whitepaper 2.0, the focus of which was the development of so-called Decentralized Oracle Networks (DON). Their security, decentralization, and self-regulation are to be enhanced by a reputation system. Under it, node operators will receive rewards or penalties depending on the accuracy and time of the data provided.
At the same time, the entire community of LINK holders will be able to play a role in the process, by delegating their coins. Ultimately, this is expected to lead to an expanding network infrastructure and the emergence of increasingly valuable Chainlink jobs.
LINK price reaction
Shortly after the publication of the entry, the price of the LINK token increased by almost 17% measured for the extreme values of the wicks. The rise started from the $7.77 level (green arrow) and after a few hours a local peak at $9 was reached.
LINK chart by Tradingview
The positive news on the staking was significant for the price. From a technical perspective, LINK successfully broke out above the channel in the $6.28-$8.00 range, where it had been since the crash of May 12, 2022. At that time, the cryptocurrency bottomed at $5.3 and began a nearly month-long consolidation.
If the rise continues, the next resistance for LINK will be the $10.3 area, from which the token’s price broke down in early May. This level is also the resistance area at the 0.382 Fib retracement measured for the recent declines.
According to Twitter user @cryptonewbro, the release of the details of the staking program at $7.77 was not accidental. However, regardless of the interpretation, the information had a positive impact on the price of LINK and strengthened the community’s faith in the long-term vision of Chainlink’s creators.