Staking and CCIP are coming soon, what will these two important changes bring to Chainlink?
Since its launch, Chainlink has become a fundamental part of DeFi.
Their price feedback is still the most trustworthy to date, and many DeFi protocols rely on Chainlink’s price oracle to provide accurate price data.
$LINK dominates the oracle realm, and I don’t think this will change in the near future.
The main catalysts for $LINK: pledge and CCIP coming soon.
Let’s take a look at the future of these use cases.
Staking of LINK
Since its inception, one of the main criticisms of $LINK has been that token holders have not received any share of the agreed revenue, and the $LINK pledge would change all that.
With the introduction of the V0.1 version, $LINK pledgers will receive an annual interest rate of approximately 4-5% $LINK rewards, depending on the node they pledge. V0.1’s pledge pool was capped at $25 million at the start and is planned to expand to $75 million in $LINK$LINK months to come.
This changes after V1 arrives, and rewards are allocated based on user fees and the time you choose to lock $LINK. The cap will also be unlocked, and the subsidy will be replaced by the user fee.
The interesting thing about $LINK staking mechanism is that nodes with more $LINK staked will receive higher work value than nodes with fewer $LINK support, which can generate more revenue for node operators.
Then we may see a situation where node operators buy more $LINK to outperform their competitors, which may result in more revenue or deposit their LINK rewards into their own pool of funds. The best payment nodes may attract more LINK coin holders, which may increase the pool of funds.
Sergey Nazarov reportedly said through Smartcon that the $LINK pledge will go live in December this year.
Another major update to Chainlink is the CIP (Cross-Chain Interop Protocol). In layman’s terms, CCIP is a system that allows developers to create multi-chain smart contracts.
CCIP is an infrastructure that looks at reducing complexity from the fragmentation of chains and making blockchains truly interoperable.
It’s going to be a big deal, and development is still ongoing, so I don’t think it’s going to be released anytime soon.
A look at all the products that Chainlink is developing, such as Oracles, VRF, Keepers, DECO, and CCIP, all illustrate Chainlink’s vision of being an infrastructure layer for all blockchain technologies.
And Chainlink doesn’t just consider blockchain in DeFi, they are also betting on legacy systems that it will eventually move to blockchain as well and bring new problems to solve. We’ve seen examples like using Chainlink to get weather data and crop insurance.
In short, Chainlink has long been bullish on the continued expansion of blockchain technology and its emergence as an infrastructure to support all relevant data.
Think about what it would be like to use blockchain to automate traditional areas such as the insurance market as a common solution for enterprises.
Revenue with team tokens
For more information on revenue, the $LINK reward for node operators last month was about 490,000 $LINK, and at the current price of $8 per token, the annual revenue is about $48 million (which may include incentive subsidies). The tricky thing about Chainlink’s revenue is that a portion of the $LINK reward is likely to be sold by node operators for operating costs.
But again, once staking is rolled out, node operators are likely to stake a portion of their LINK rewards to remain competitive with other operators.
Another part to note is that the Chainlink team has kept LINK tokens to fund operations since its release.
Currently, the team wallet appears to hold about 150 million LINK tokens worth to fund expenses. It looks like they haven’t sold recently, but keeping track of this can be time-consuming because over time, $LINK funds have been transferred to different wallets.
Spending money is also something I haven’t been able to find. Because the team used $LINK to fund its allocations, it was best to think of these $LINKS as long-term releases to fund development and temporary incentives.
In my opinion, the bet on $LINK is a bet on blockchain technology going mainstream and directly for enterprise solutions. The more protocols that use Chainlink, the more revenue the node operator will generate, which may lead to more demand for $LINK ownership.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/talk-about-chainlinks-new-narrative-pledge-and-ccip/
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