The LINK token staking will start in December 2022 thanks to the new “Build” and “Scale” initiatives from the well-known blockchain oracle network, according to cofounder Sergey Nazarov.
Prior to the introduction of staking of its native token at the end of this year, Chainlink, a provider of price feeds and other data to blockchains, is lowering the network’s entry barriers for early-stage projects and reducing costs for existing participants, the company said at this week’s SmartCon developer event held in New York.
Emerging teams can participate in the “Build” program of the smart contract oracle network, which drives most of the decentralized finance (DeFi), by contributing 3% to 5% of their native tokens in exchange for access to Chainlink data. Additionally, the “Scale” initiative intends to cut the cost of on-chain transactions involving smart contract oracles that have already been started to almost nothing.
Chainlink has played a significant role in the ups and downs of DeFi’s growth, which reached over $250 billion in total locked value (TVL) late last year but is now stuck at just over $55 billion as a result of the severe bear market circumstances. However, some cryptocurrency market observers have noticed a discrepancy between Chainlink’s function as a cornerstone of DeFi (according to Chainlink co-founder Sergey Nazarov, its oracles have contributed to over $6 trillion in transactions so far this year) and the market cap of its native token LINK.
The Chainlink community is hoping that its new initiatives and the addition of LINK staking and incentives would help to reduce any disparities. According to Nazarov, chainlink staking is planned to begin in December.
Nazarov stated that TVL is down because of the decline in value of underlying assets, but usage is still strong, in regards to the current crypto winter and DeFi’s resilience within it.
Nazarov stated in an interview that “the business activity in DeFi is still at a very high level.” It’s actually the same as it was before, and in some ways, cryptocurrency may even be more alluring given that the more terrifying the world becomes, the more alluring cryptocurrency becomes.
