Chainlink’s highly anticipated upgrade, the launch of Staking v0.1, was successfully completed today. The function is an important part of the Chainlink Economics 2.0.
Chainlink Strike Creates Huge Demand
Chainlink Staking aims to create stability for the ecosystem. Participants can earn rewards by staking the LINK token to secure the network by encouraging fair behavior.
This reward mechanism is intended to ensure that nodes have an incentive to improve oracle data integrity and efficiency for years to come.
As of yesterday, a limited number of community members can stake up to 7,000 LINK worth approximately $53,000. From tomorrow, December 8, this will be possible for everyone. This gives everyone per address the chance to stake up to a limit of 7,000 LINK.
Initially there is a limit of 25 million LINK for the staking pool. In addition, 22.5 million LINK will be allocated to community strikers on a first come, first served basis. In addition, 2.5 million LINKs will be allocated and reserved for node strikers.
According to data from Etherscan, there are currently 11.1 million LINK stakes. This equals approximately $75 million. The amount will be distributed over more than 2,600 addresses. At this rate, the limit of the Chainlink Strike v0.1 would be reached very quickly.
It is important for participants to note that the staked LINK and rewards will remain locked until the release of Staking v0.2. This is scheduled for about 9 to 12 months.
Originally, a period of 12 to 24 months was planned for this. This was based on a conservative release cycle. However, after negotiations with some community members and node operators, faster iterations were identified as a better solution.
LINK is stuck in trading range
As staking reduces the supply of liquid LINK, it could be a potential price catalyst. Currently, the price of LINK has been in a trading range for 7 months, from which the price has not been able to escape.
The price of LINK is down more than 4 percent in the past 24 hours. It is trading at a price of USD 6.84 and thus in the middle of the trading range.
The USD 5.30 price level marks the lower end of the range. The USD 9.60 price level marks the top end of the range. Only reaching the top of this range could catapult LINK back into bullish territory.