- Chainlink is creating a self-sustainable oracle economy.
- The new creation will allow users to cover and exceed the operating costs.
- Chainlink’s new token release program would cover a longer period and be more predictable.
Chainlink is creating a self-sustainable oracle economy. The new creation will allow users to cover and exceed the operating costs of the network’s node operators, coordinators, and stakers.
While working on the new creation, Chainlink adopted a sustainability model that would preserve the network. According to a blog post, the blockchain project is implementing a revised token release schedule. The new token release program would cover a longer period and be more predictable.
A Chainlink community ambassador on Twitter with the identity ChainlinkGod.eth noted that with the new arrangement, the protocol would employ tokens from the non-circulating supply as subsidies, including as oracle rewards to nodes.
Excerpts from Chainlink’s report on the new development indicated that 7% of LINK’s total supply will be released into circulation between Q2 2023 and Q1 2024. Subsequently, a similar amount of LINK tokens would be released every twelve months. However, the Chainlink Foundation could alter that arrangement based on external factors. Such factors could include increased network sustainability from user fees.
The report clarified that the anticipated 12-month LINK token release rate remains lower than the average obtained in the Web3 marketplace. Chainlink observed the rate is lower than the majority of other Web3 projects in the top 100 by market capitalization.
Chainlink analyzed the Web3 ecosystem using publicly available data based on changes in circulating supply among Web3 projects between May 31, 2022, and May 31, 2023. The data covered project categories that include L1 blockchains, L2 networks, DeFi, infrastructure, NFTs, GameFi, DAOs, and AI.
Chainlink is a decentralized oracle network built on Ethereum. A protocol that allows smart contracts to automate and transfer data between blockchains. Chainlink projects that the new token release schedule would decrease LINK’s annual inflation each calendar year.
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