chainlink is the underlying infrastructure for the smart contract economy, supporting nearly a thousand networks oracles, tens of billions of dollars in security for hundreds of projects. With the work chainlink seamlessly integrated on many recent blockchains and supports service categories oracles new, it is important to scale the security of chainlink to accommodate the growing amount of value in applications due to chainlink provided. A new era of sustainable growth and security – Chainlink Economics 2.0 – opened with the debut staking.
Staking is an important mechanism that aims to bring a new layer of crypto-economic security to chainlink, where cryptocurrency rewards and penalties are applied to help further incentivize the proper functioning of the network. The overarching mission of Chainlink staking is to provide ecosystem participants, including node operators and community members, the ability to enhance the security of the services safely and securely. Orcales by supporting them with tokens LINK is already staking. With the work staking LINK will enhance the ability of nodes to receive work and earn corresponding fees in the network chainlink.
This article talks about the long-term goals underpinning staking chainlink, the initial rollout is planned for the second half of 2022, and its expected expansion roadmap will update over time as the system Staking gradually perfect.
Long-term goals of Chainlink staking
Staking Chainlink is being built around four long-term goals. These goals serve as the central principle behind its development and will be the pillars for determining its success over time as the system grows. Staking deployed.
1. Enhancing the economic security of cryptocurrencies and ensuring users of Chainlink services
The main goal of Chainlink staking is to enhance both the economic security of cryptocurrencies and guarantee the users of the services Oracles of chainlink. This is achieved by enabling token locking LINK as a form of service-level assurance about network performance. If the network oracle fail to meet the obligations outlined in the on-chain service agreement (SLA), then part of LINK is already staking can be clipped and redistributed. The possibility of loss protection is also being explored, where a certain amount of LINK Certain cuts can be used to protect sponsors of services Oracle of chainlink.
Staking introduces another powerful incentive and punishment mechanism to nodes chainlink Continuously generate reports Oracles accurately and send them to specific destinations in a timely manner. Security as part of a defense-in-depth approach to security chainlink already includes a multitude of other key protections including decentralization, cryptography, implicit incentives, future fee opportunities, and modular configurability.
With the extensive integration of chainlink in the leading smart contract applications, enhancing security Oracles and guarantee to the user by staking will be key to helping multi-chain smart contract economies scale to ultimately secure trillion-dollar markets across major global industries.
2. Enable community participation in the Chainlink network
Another important goal of staking is to empower larger numbers of community members to participate directly in the Network chainlink by allowing them staking tokens LINK theirs to support the performance of the networks oracle. Importantly, holders can issue a warning if they believe a service Oracle yet to meet predefined performance standards, with the opportunity to earn rewards for timely and valid alerts. Community monitoring and alerting play an important role in further decentralizing the Network chainlink and facilitate a strong reputation system and tight mechanics.
Ecosystem participants including community members and node operators can staking LINK of them in separate allocations within a group Staking. Furthermore, node operators can create or use a delegation system, which serves as an additional means for community members to stake LINK mine.
3. Generate sustainable rewards from long-term use
The third goal of staking is to create and distribute rewards to people stakes. chainlink expect that there will be various sources of rewards offered to those who stakes by the time. As network adoption increases and more protocol fees are generated, a large portion of the rewards staking can be obtained from sources not based on its angular token discharge.
The native token discharge from the token supply LINK will be used to create the initial base bonus for those who staking, with the goal of decreasing over time as other sources of rewards grow and begin to be passed on to people staking.
User service fees from the sponsors of the services Oracles of chainlink, with a portion going to distributors. The more users pay for the services of Chainlink oracle, the greater the number of fees that may be available to reward those performing those services.
Another expected source of benefits for planners is Partner Growth Program (PGP) —an initiative in which protocols and DAO linked to the supply chain provide various incentives to accelerate their development and facilitate the participation of ecosystems. It is expected that some projects will benefit from the security of chainlink will participate Partner development program.
Besides, chainlink is expanding its loss protection capabilities, which will result in additional user service fees from the sponsors of the services. Oracles Chainlink seek protection against networks Oracle supported do not follow SLA their. The greater the guaranteed value, the greater the potential protection demand and the number of possible rewards for the person stakes greater.
4. Empower Node Operators to Access More Valuable Jobs by Staking
The ultimate goal of Chainlink staking is to establish a strong reputation framework for how nodes are selected to participate in the network Oracle decentralized (DON). As Chainlink nodes approach parity in terms of infrastructure reliability and security – reflected in metrics like response times and accuracy – the next logical distinction to define node pools in DON is the quantity LINK which each node is willing to contribute to support services Oracles their. Over time, this will make the staking become an important mechanism for node operators who want access to higher value jobs and more fee opportunities in the Network chainlink.
More importantly, the reputation and stake-based node selection mechanism can bring even more security to the crypto economy for the end-users of the services. Oracles of chainlink. This evolution towards a comprehensive reputation system for node operators could also open up more insights for users about the performance and incentives of node operators.
Advanced Chainlink staking – Oracle network security impact curve
Initial Implementation of Chainlink Staking
Before sketching out some of the initial specs and design decisions planned for launch, it's important to note that Chainlink staking will grow over time, especially as more networks Oracles on more types of services will accrue a larger number of charges. Initial implementations focused on creating a simple and secure platform through which feedback could be gathered before scaling and adding complexity to the zoning design.
The implementation of the mechanism staking will be similar to the Price Feed chainlink, from a Price Feed ETH / USD only on Ethereum by dad node Oracles Operated to date supporting nearly a thousand Price Feeds powered by over 50 top node operators across 12 blockchains and layer 2 solutions. This pragmatic approach enables the identification of risks and opportunities assembly in the early stages of deployment before scaling to meet growing user demand.
According to this approach, Chainlink staking will develop on multiple versions, with release v0.1 The first is slated to launch later this year. This first release focuses on introducing the reputation framework and the alert system stake. After full validation from production use and community feedback, the release v1 will introduce additional functionality such as staking for stronger crypto-economic security and incorporating user fees as rewards. Furthermore, the release v2 will explore the introduction of loss protection to help protect participating donors when the powered oracle network deviates from SLA its.
The roadmap below reflects an overview of the planned approach to implementing some of the key functions of the Chainlink staking on multiple versions. As user feedback and in-production data are collected, priorities in this roadmap may change and features may change to better serve user requirements. Furthermore, the specific functions in each version staking can be deployed on different schedules to manage risk and simplify deployment.
An overview of the tentative roadmap for the development of Chainlink staking
Reputation and Warning
Initial version v0.1 of Chainlink staking focused on introducing the reputation framework and alerting system, which are important requirements for the cuts and other planned functions that will be available in later releases. To ensure robustness in real-world usage, these systems will be used to monitor the performance of the Price Feed ETH / USD on the main net Ethereum.
Importantly, people staking will have the opportunity to follow the feed, issue an alert and receive a reward if they successfully detect in time that the feed ETH / USD does not meet the conditions of the agreement SLA. In v0.1, alert conditions will focus on feed uptime but will expand in scope in future versions.
Once the alert has been raised, the arbitration smart contract automatically verifies that the conditions of the SLA the smart contract has been breached and whether the warning is valid or not. Once this process is complete, the alert will be issued a reward afterwards. The results of a valid alert are then fed into a reputation system where the reputation of each operator of the failed node is updated. In v1, the reputation system is planned to expand to track a larger number of key metrics around the performance of node operators, and plays an increasingly important role as the network grows. chainlink scale expansion.
Finally, version v0.1 of Chainlink staking represents the core framework of an alert and reputation system, which is planned to be developed to provide linear security guarantees and then scaled to support hyperlinear security guarantees such as described in Whitepaper Chainlink 2.0.
Pool staking original in version v0.1 will be limited in size, providing separate allocations for node operators, community members, and coordinators of networks oracle. The team will start with an aggregate size of 25 million tokens LINK, with the planned goal of scaling the pool to 75 million tokens LINK in the months following launch, based on demand. For future releases, the team size will be further expanded and additional Feeds and services staking will be supported.
To initially fill the community alert allocation, a fair participation mechanism will be used to help ensure the participation of many community members. This mechanism will aim to favor long-term token holders who are most likely to participate actively in the alerting mechanism. Node Operators Actively Serving the Feed chainlink will be provided with their own separate allocations. A third-party node authorization system is being explored and is currently planned to be supported in a release v1.
Parties involved in the release v0.1 will be locked LINK is already stakes their until at least the release v1, they will then be able to choose commit intervals that have different times.
In version v0.1, it is expected that the original token payout is directed to the parties stakes will target the base level of the reward staking up to 5% annually. After the release of the version v1, the annual reward will vary based on user fees and the length of the commitment period, with producers who choose a longer commitment period having a greater chance of receiving a larger reward.
Furthermore, manufacturers in v0.1 will also be eligible to earn additional benefits from Partner development program (PGP). This program is an initiative that is planned to be launched in conjunction with Chainlink staking, where the project chainlink provide various benefits to accelerate their development and align their economic drivers with the community chainlink. This association creates motivation for those who perform chainlink to become active participants in the project's ecosystem, creating an avenue to accelerate adoption. The first version of PGP planned for v0.1, with a more complete version expected for v1. More details will be provided in the future and I will keep everyone updated as details become available.
When work staking switch to version v1, it is planned that a portion of user fees will begin to be awarded to investors, which coincides with the economic security of crypto-currency provided by the cut LINK is already staking. Furthermore, the fees related to loss protection, are being investigated for the version v2, can become a source of rewards in addition to token discharge, user fees and benefits PGP. Additional details and specifics about each release version will be released over time.
The launch of Staking is an important moment marking the development of Chainlink Economics 2.0 — a new era in the cyber economy and long-term security of chainlink. Although the initial implementation of Chainlink staking designed to minimize risk to participants and create a solid foundation, long-term goals revolve around expanding chainlink into a global standard with a growing and sustainable user base thus providing greater reward opportunities for creators who enhance the crypto-economic security of the network and ensure for users.