We have previously discussed the importance of staking in the future of LINK Coin, especially in recent evaluation articles. While the Bitcoin price is trying to surpass $38,200, the Chainlink team has delivered good news according to the schedule. We had excitedly announced the previous staking announcement. But what does this latest move mean?
What is Chainlink Staking v0.2?
Starting today, from November 28th, current v0.1 stakers can move to the second version during a nine-day Priority Passage phase. By December 7th, those who meet predefined eligibility requirements will have the opportunity to stake LINK tokens. Subsequently, general access will be activated. Chainlink Staking v0.2 is an expanded version of the previous stake pool.
Staking introduced a new cryptoeconomic security layer to the Chainlink Network with Chainlink Economics 2.0. We spoke of this step for LINK Coin as a turning point when it was first announced.
Staking allows ecosystem participants such as node operators and community members to support the performance of oracle services with staked LINK. This not only increases security but also rewards stakers. The most important detail is that it helps LINK Coin shed the label of the project’s “useless token.”
Moreover, as the stake pool expands to 45 million, 8% of the circulating supply will not be in circulation, creating a supply shortage on exchanges. All these factors could positively affect the long-term performance of LINK Coin’s price.
Innovations in Chainlink Staking v0.2
The stake pool that started last December had many shortcomings. With feedback from the community, the Chainlink team is implementing some new features with v0.2. This is promising because as the pool expands and evolves, the benefits and attractiveness of staking LINK Coin will multiply. The main changes are as follows;
- New unbonding mechanism providing more flexibility for Community and Node Operator Stakers while maintaining a secure and unsupervised design.
- Enhanced security guarantees for oracle services secured by Chainlink Staking through the slashing of node operator stakes.
- A modular architecture to iteratively support future improvements and additions, such as extending Chainlink Staking to more services.
- A dynamic reward mechanism that seamlessly supports new external reward sources like user fees.
- At the launch of Staking v0.2, the limited pool of 45,000,000 LINK will consist of an allocation of 40,875,000 LINK for community members, with the remainder allocated to Chainlink node operators currently serving Chainlink Data Feeds. Community Stakeholders can stake a minimum of 1 LINK and a maximum of 15,000 LINK during Early Access and General Access. Remember that entry into v0.2 during these phases is not guaranteed due to the limited pool size. Node Operator Stakers can stake a minimum of 1,000 LINK and a maximum of 75,000 LINK.
- Chainlink Staking v0.2 enhances network security.
- Community feedback shapes new staking features.
- Limited pool size influences staker participation.
