Chainlink Launches Strategic LINK Reserves to Sustain On-Chain and Off-Chain Revenue Streams

Decentralized Oracle Network Chainlink Announces Strategic LINK Reserve

On Thursday, the decentralized oracle network Chainlink announced the launch of a strategic LINK reserve, aimed at supporting the long-term growth and sustainability of the network by accumulating tokens from off-chain enterprise payments and on-chain service revenues.

According to the statement, the program has initially secured LINK tokens worth over $1 million, and as more revenue is converted and incorporated, the reserve is expected to gradually expand in the coming months. The Chainlink Reserve tracking website shows that there are currently 65,539 LINK tokens in the reserve, valued at approximately $1.25 million, with a cost basis of $16.83.

With a significant rebound in the cryptocurrency market, LINK has risen approximately 15% in the last 24 hours, trading at $19.1 at the time of publication.

Chainlink connects blockchain with real-world data, other decentralized networks, and enterprise systems, supporting applications in decentralized finance (DeFi), banking, on-chain real-world assets (RWA), and cross-chain scenarios, facilitating transactions worth tens of trillions of dollars.

Chainlink has been adopted by several large institutions and DeFi protocols, including Swift, Euroclear, Mastercard, UBS, and Aave. Chainlink claims to have generated hundreds of millions of dollars in revenue, most of which comes from enterprises acquiring platform access through off-chain payment methods, which will also drive the continued expansion of the reserve in the future.

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The reserve utilizes a payment abstraction mechanism to convert on-chain and off-chain revenues into LINK. This mechanism allows users to pay Chainlink service fees in their preferred method (such as stablecoins) and automatically convert the funds into LINK through decentralized exchanges.

Source: Chainlink

Chainlink co-founder Sergey Nazarov stated:

Chainlink has indicated that it will not withdraw from the reserve in the coming years to ensure stable growth. With the continued rise in demand for Chainlink services, broader adoption is expected to further expand the scale of the reserve.

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