Chainlink has launched the Chainlink Reserve, a strategic onchain reserve of LINK tokens designed to support the long-term growth and sustainability of the Chainlink network. This new upgrade converts both onchain service usage revenue and offchain revenue from large enterprises into LINK tokens, which are then accumulated in the reserve. Enterprises pay for Chainlink services in fiat or stablecoins, and through a process called Payment Abstraction, this revenue is automatically converted into LINK. The reserve is intended to operate as an accumulation mechanism with no withdrawals expected for multiple years, effectively reducing sell pressure and creating a supply shock. This initiative aims to align incentives within the Chainlink ecosystem and enhance the protocol's value capture as adoption increases. Major financial institutions and corporations such as Mastercard, J.P. Morgan, Swift, DTCC, Euroclear, Central Bank of Brazil, UBS, SBI, ANZ, and Fidelity International are leveraging Chainlink’s technology, contributing to the network's revenue and growth. The launch of the Chainlink Reserve has been met with notable market response, including an 11% increase in LINK token price. The reserve represents a novel approach in the crypto space by programmatically converting diverse revenue streams into a strategic LINK token stockpile, positioning Chainlink as a key player in bridging traditional finance and decentralized finance (DeFi).
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