Chainlink, a blockchain oracle provider, wants to introduce a staking protocol on the ETH network. This is part of the company’s long-term sustainable development to improve the blockchain network.
The company announced the news of its staking projects on December 1st. In the post, Chainlink revealed that staking on the Ether mainnet would go live on December 6th.
Lockup Period For Staking Reduced To 9-12 Months
Previously, the lockup period for staking was 12-24 months. However, the Chainlink team has decided to reduce it after discussing it with node operators and the community.
There will be frequent releases in the future, with each one having a condensed scope and critical features.
“The upcoming Staking v0.2 will be launched in 9-12 months. This means that v0.1 stakers can either restake or unlock their rewards and staked LINK,” the post stated.
Meanwhile, the latest beta Chainlink Staking (v0.1) on the Ethereum blockchain is for selected users. Only qualified addresses can use the service currently.
Also, the qualified users can stake about 7,000 LINK in a pegged staking pool. A user’s off-chain and on-chain activity on their wallet determine eligibility.
On December 8th, Chainlink will open unrestricted access to all LINK holders to participate in the staking. Meanwhile, a November 30th blog post reveals that the pool cap is only 25 million LINK.
Staking Supply Will Keep Increasing – Chainlink Co-Founder
“The staking v0.1 supports ETH/USD on the ETH network. Users who take part in a decentralized alert system will receive staking rewards,” the post added.
Also, the new staking project is part of the platform’s Chainlink Economics 2.0. This project will reward node operators and holders of the LINK token who help increase the platform’s security.
Earlier in September, Sergey Nazarov, the co-founder of Chainlink, was at SmartCon 2022. At the event, he stated that staked supply would keep increasing as more users continue to demand staking options.
The co-founder noted that Chainlink Economics 2.0 would allow the network to expand across various services and blockchains to several users.
Staking gained massive popularity after Ethereum transitioned from the PoW (proof-of-work) consensus mechanism to the PoS (proof-of-stake). This meant the network no longer needed miners as validators but now needed stakers.
Meanwhile, LINK, the native token of the Chainlink network, has been performing well lately. CoinGecko reveals the token’s price has increased by 23% in the past two weeks, currently trading around the $7 region.
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