Chainlink (LINK) Announces Stacking Mechanism v0.2 Upgrade to Improve Network Functionality
In Brief
Chainlink (LINK) announced v0.2 upgrade for its native staking mechanism, an important advancement in the network’s functionality.
Oracle network Chainlink (LINK) has revealed an upgrade to its native staking mechanism, signifying an important advancement in the network’s functionality. The mainnet launch of the Chainlink Staking v0.2 comes eleven months after the initial introduction of staking by Chainlink in December 2022.
The staking pool has expanded from the initial allocation of 22.5 million LINK to 45 million LINK, accounting for 8% of the altcoin circulating supply. This growth underscores a significant expansion in the staking pool size, indicating a 96% increase and a substantial enhancement in the network’s staking capacity.
Alongside the expansion, Chainlink has implemented a phased approach for the migration to the new upgrade, including a nine-day priority migration period starting from November 28.
During this period, existing v0.1 stakers have the opportunity to transfer their staked LINK and accrued rewards to the Chainlink Staking v0.2 system. Following this, a four-day early access period allows eligible LINK holders to stake up to 15,000 LINK tokens, before opening access to the general public.
Chainlink is the most widely used oracle network, providing external real-world data to blockchain applications. Chainlink staking increases the utility for the token, allowing LINK holders to support the performance of oracle services and earn rewards for contributing to the network’s security.
It was initially only accessible for staking to secure the Ethereum ETH/USD price feed, with a pool capped at 25 million LINK tokens.
LINK’s Market Reaction Falters Despite v0.2 Upgrade
Despite the positive development of the Chainlink Staking v0.2 upgrade, the market performance of LINK has shown a relatively subdued response. The altcoin has experienced a 4% increase in the 24 hours after the update. However, broader market indicators suggest a decrease in LINK accumulation and a decline in market participation.
The Money Flow Index (MFI) and the Chaikin Money Flow (CMF) indicators on LINK’s daily chart indicated the downward trend, while the MFI resting below the center line, indicated that distribution activities have surpassed accumulation. The CMF was also on the verge of entering negative territory, signifying a consistent outflow of liquidity from LINK’s spot market over the past two weeks.
While Chainlink’s v0.2 staking upgrade represents a significant step forward in enhancing the network capabilities, market participants approach it cautiously. Market indicators for LINK highlight a decrease in accumulation and open interest, emphasizing the complex relationship between network advancements and market dynamics in the cryptocurrency sector.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
