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Chainlink to Launch Staking on Ethereum, What Does It Mean to LINK Price?

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VOC, Voice of Crypto, Chainlink, LINK

Key Insights

  • Chainlink to launch staking on Ethereum by 6 December.
  • The launch will come in phases, as the first phase will be on the Ethereum beta.
  • The LINK token is expected to rise to the $9 mark.

 

Chainlink, a leading blockchain oracle provider, has announced its long-term sustainable economic program for the blockchain network. The program’s highlight is the plan to launch staking on the Ethereum blockchain. The details of the launch of the staking V0.1 was tweeted on the oracle providers page. 

The LINK ecosystem’s long-term sustainable economic program is called Chainlink’s Economics 2.0. Furthermore, Economics 2.0 will focus on providing multiple opportunities to help LINK holders earn passive income.

Interestingly, Staking on LINK blockchain is a crypto-economic security mechanism whereby stakers commit their LINK tokens in smart contracts— to back certain performance guarantees around Oracle services. Significantly, a blockchain oracle, which Chainlink provides, is a third-party service that offers smart contracts with external information. Similarly, they serve as a bridge between blockchains. 

LINK Staking on Ethereum

 Chainlink announced the update on its staking initiatives. It announced its LINK staking would go live by 6 December in beta mode on the Ethereum mainnet. Initially, the Oracle provider announced a 12 to 24-month lockup period. 

However, the latest announcement in December confirmed that there would be rapid iterations and frequent releases. That is, the launch of staking on Ethereum will come in phases. 

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Furthermore, the first phase of the staking will be the beta release. In this phase, the staking pool will support the ETH/USD data feed on the Ethereum mainnet. Similarly, stakers will receive rewards and provide security for Chainlink’s data feed.  These stakers will participate in a decentralized alerting system that flags— if the data feed has not met certain performance requirements regarding uptime. 

You would recall that Chainlink provided price feeds and data to blockchains. However, it has announced the introduction of the staking of its native token.

Similarly, Chainlink announced the Build program in the build-up to the launch. The oracle provider will offer a build-up program where up-and-coming teams donate 3% to 5% of their native tokens to the network. These teams will get access to the Chainlink data in return. 

Chainlink Token Surges

Reports show that Chainlink’s token, LINK, has recorded significant gains in the last couple of weeks. Significantly, the LINK token yielded 22% gains for holders in the last two weeks. 

Similarly, the oracle service provider started the week on a strong note. It started at $7.38 and climbed to the weekly high value of $7.74, with the likelihood of it rising to $8. From June 2022 to the first week of December, LINK’s price has tested the $9.50 level thrice. 

With the recent surges in the price value of Chainlink and the launch of the staking on Ethereum, experts and industry players are bullish on LINK. For instance, Michael Van De Poppe, a leading crypto market analyst, anticipates that Chainlink’s price will cross the $9 mark. 

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