Chainlink launches 'Chainlink Reserve' to accumulate LINK through oracle revenue

Chainlink (LINK) has introduced a strategic reserve system that supports network growth by converting service-generated revenue into LINK tokens.

On the 7th (local time), Chainlink announced the launch of a new on-chain reserve structure called 'Chainlink Reserve.' This structure converts and accumulates both on-chain and off-chain revenues generated during the usage of Chainlink's oracle network into LINK, aiming to secure the network's long-term security and sustainability.

Chainlink handles the payment structure, where companies using its oracle solutions pay with various assets such as stablecoins rather than directly with LINK tokens, through its 'Payment Abstraction' technology. The payments received are then converted into LINK on-chain and accumulated in the reserve. According to Chainlink, over $1 million worth of LINK has been accumulated in the reserve so far.

Chainlink emphasized, "The LINK reserve is based on actual off-chain revenue from large enterprises and on-chain service usage," and stated, "This marks a significant evolution, as it supports the network through real revenue rather than simple token issuance." They added, "It is expected that the LINK reserve will gradually expand in the future."

Sergey Nazarov, Chainlink co-founder, explained, "Demand for the Chainlink standard has already generated hundreds of millions of dollars in revenue, most of it coming from large enterprises paying for platform access off-chain," and added, "The introduction of this reserve establishes a structure that ensures the growth and sustainability of the Chainlink network based on this revenue."