chain link, a leader in the decentralized oracle industry, unveiled the details and roadmap of its new staking program yesterday. Apart from strengthening the cryptographic security of the network, the program will bring a return of around 5% to LINK holders.
Economics 2.0, a new phase of security and sustainable growth, will begin with staking”. The primary purpose of Chainlink is to allow community members and network node operators to contribute to the security of oracles services using their LINK tokens. This is indeed a key step to make Chainlink a global reference in the oracle sector.
The launch of the first version of the staking program (v0.1) is planned for the second quarter of 2022. The roadmap presented in the press release also includes several expansion projects.
Chainlink Staking Program: 4 Long-Term Goals
In its article, Chainlink revealed the 4 main purposes of this staking program. The company stresses, however, that these are long-term goals and that the details of staking and other aspects will change in the future.
The 4 long-term goals of the Chainlink staking program are:
- Strengthen crypto-economic security and safeguards for users of Chainlink services;
- Encourage community participation in the Chainlink network;
- Provide sustainable rewards to real users over the long term;
- Enable node operators to access higher functions through staking.
Note, however, that all the above objectives are already included in version 2.0 of the White Book, which emphasizes the development of decentralized oracle networks (DON). Indeed, their security, decentralization and self-regulation will be reinforced by a “reputation system”. With it, node operators will receive rewards or penalties depending on the accuracy and timing of the data provided.
On the other hand, the community of LINK holders could play a key role in this process, especially with the delegation of tokens. The idea is to expand the network infrastructure while creating increasingly attractive jobs on Chainlink.
What impact on the price of LINK?
Shortly after the announcement, the price of the LINK token rose almost 17% (between the lower wick and the upper wick). The rise started from the $7.77 level (green arrow) and reached a local peak of $9 a few hours later.
The announcement of the staking program had a significant impact on LINK’s price. In technical terms, the token managed to break out of the channel oscillating between $6.28 and $8.00, where it had been since the crash of May 12, 2022. On that day, LINK had reached a low of 5.3 $ and began a consolidation of almost a month.
If the rise continues, LINK’s next resistance will be in the $10.3 area, which the token lost in early May. This level also forms the resistance zone at the 0.382 Fib retracement measured in the recent declines.
According to the Twitter account @cryptonewbro, the release of staking program details at the time LINK’s price was at $7.77 was not random. Either way, the announcement had a positive impact on the price of LINK and boosted the community’s confidence in the long-term vision of the creators of Chainlink.
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Chainlink (LINK) Reveals Details of Its Staking Program – BeinCrypto
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