Chainlink Staking Mechanism Gets Major Upgrade

Chainlink, a popular decentralized computing protocol, has reportedly enhanced its native staking mechanism by introducing Chainlink Staking v0.2, which features a larger pool capacity of 45 million LINK.

Commencing today, there is a 9 day priority migration phase for existing v0.1 stakers to move their staked LINK and rewards to the updated version. Subsequently, access will broaden for other participants through early access and general access stages starting on December 7th and December 11th, respectively, allowing users to stake a maximum of 15,000 LINK.

The importance of staking

With the expansion of the staking pool to 45 million LINK, equivalent to 8% of the existing circulating supply, Chainlink aims to attract a more diverse range of LINK token holders. This enlargement aligns with the Economics 2.0 strategy, designed to enhance overall network security.

Chainlink staking contributes increased functionality to the token and affords LINK holders the opportunity to support the performance of oracle services, earning rewards for their role in securing the network. Initially, staking was exclusively available for securing the Ethereum ETH/USD price feed, with a capped pool of 25 million LINK tokens.

Security is key

The new version is intended to provide a more flexible mechanism which will allow users to withdraw their staked tokens more efficiently, as well as improved security guarantees. Its modular architecture aims to facilitate greater adaptability, making future upgrades and improvements easier to incorporate.

Lastly, Chainlink Staking v0.2 also includes dynamic rewards mechanisms that can seamlessly support new sources of rewards in the future, according to the team. Observing a consistent rise in the value secured by and transacted over the Chainlink Network, enhancing crypto based security becomes increasingly crucial, noted Chainlink co-founder Sergey Nazarov. Sergey further stated that v0.2 introduces crucial new security features and positions the system for further expansion in the upcoming year.