Decentralized oracle protocol Chainlink (LINK) posted details of its long-term goals and new roadmap on June 7, which will bring the network to the “Chainlink Economics 2.0” era.
“Economics 2.0” introduces staking to help secure the network and reward user participation.
Staking is an important mechanism that aims to bring a new layer of crypto-economic security to Chainlink, where crypto rewards and penalties are applied to help further incentivize proper functioning. network.”
When the news was announced, buying pressure triggered the price of LINK to increase 24%, reaching a peak of $9.02. However, LINK has been trading steadily on June 8 with a slight selling bias, bringing its price back to $8.41 at press time.
New Era for Chainlink
In a tweet publicizing the issue, Chainlink said the staking is the start of the Econometrics 2.0 era, which will bring “long term sustainability and security”.
Mark the beginning of #Chain link Economics 2.0, a new era for the long-term safety and sustainability of the oracle network.
In this update, we define the long-term goals, roadmap, and initial implementation of staking in the Chainlink Network. https://t.co/WJkoUzPA0i
– Chain link (@chainlink) June 7, 2022
A blog post goes into more detail by mentioning four long-term goals as principles for success in this new phase of Chainlink’s development. In summary, they are:
- Enhanced security and assurance for users of the protocol – networks will be required to lock the LINK token “as a form of service level assurance of network performance.” Failure to meet service level agreements will result in partial confiscation of locked tokens for redistribution.
- Increase community participation – the leader oversees oracle service performance standards and is rewarded for reporting services that do not meet those performance standards.
- Create sustainable rewards – creation and distribution of staking rewards through “native token issuance” or existing LINK supply, which will decrease over time, “user service fees” generated from payment to use Chainlink services and the “Partner Development Program” refers to incentives from the linked protocols and participating DAOs.
- Empowering node operators – introduced a node reputation system to help inform node selection and incentivize node operators to operate a reliable and secure service.
Guaranteed to be implemented in the release stages
Chainlink’s staking implementation will follow the same route as its Price Feed implementation, starting with a single pair run by three nodes, expanding to nearly a thousand price pairs currently run by over 50 operating button.
“[Price Feeds] went from a single ETH/USD Price Feed on Ethereum operated by three oracle nodes to now supporting almost a thousand Price Feeds powered by over 50 top node operators across twelve chains block and layer 2 solutions.”
A similar approach would allow for multi-version staggered releases, starting with the initial v0.1 release, introducing the reputation framework and alerting system mentioned above.
A new roadmap shows a v1 and v2 release to follow, but no company dates are attached to those releases.
Chainlink says the v0.1 release will offer an annual staking bonus of 5%. However, when v1 and v2 launch, rewards are expected to increase based on user fees and commitment time.