You’ll be able to stake Chainlink by the end of the year

Good. More tokens to stake means more passive income possibilities for those who lost their faith in fiat money

Decentralized oracle network Chainlink’s team announced the LINK (native network token) staking mechanism. According to the plans, it will launch in the second half of 2022. Devs also noted that this will improve the security of the ecosystem.

“With Chainlink continuously being integrated on more blockchains and supporting new categories of oracle services, it’s important to further scale the security of Chainlink in order to match the increasing amount of value within Chainlink-powered applications. This new era of sustainable growth and security—Chainlink Economics 2.0—begins with staking. Staking is a key mechanism that aims to bring a new layer of cryptoeconomic security to Chainlink, where crypto rewards and penalties are applied to help further incentivize the network’s proper operation.”

The article by the Chainlink team also stated four long-term goals for the staking mechanism:

1. Improve network and user security

2. Make the community members more involved in Chainlink’s processes

3. Generate and distribute rewards for stakers

4. Empower node operators and build a reputation structure for selecting nodes in decentralized oracle networks

According to the developers, the first step is to create a “simple and secure foundation, through which feedback can be gathered prior to expanding scope and adding more complexity to the staking design.” Over time, the system will scale and its structure will become more complicated.

The first version of this staking mechanism will be released by the end of 2022. At first, it will have a reduced set of functions: for example, it will feature reputation systems and notifications for staking participants. In the future, the team will enable additional features like slashing.

According to the plans, the initial pool of rewards for staking will be around 25 million LINK. The devs will increase this amount up to 75 million LINK within a few months.

The first version of the mechanism will award the participants up to 5% annually. After the initial release, the staker rewards will vary depending on the network fees and the asset lock-up period.

Source: Chainlink