Later this year, after much planning, Chainlink will launch token staking. To increase the size of the oracle community and strengthen its defenses, the business is thinking about implementing a token staking system. The Chainlink group is crossing its fingers that the new staking mechanism will give the project a new lease on life as we enter the second half of the year.
When this happens, people will feel safer in their own communities.
In spite of the fact that the Chainlink network has never been breached, its reliance on a very narrow set of nodes and beliefs may nonetheless raise red flags among significant investors. Also, the fact that bad guys have avoided Chainlink’s community might not be entirely attributable to its superior security.
This suggests that it may only be a matter of time until the group is attacked once attackers find a sufficient motive to do so.
The Chainlink community’s developers are aware of this, which is why they’re working to strengthen the oracle network’s protections. The developers have implemented a staking system similar to that of Proof-of-Stake blockchains to achieve this objective.
The nodes are required to secure the LINK tokens as collateral after the application is complete. A node’s “slash” or tax value may be decreased if it lied about its level of expertise. The LINK tokens held by dishonest validators will be pooled and redistributed to those who have been honest.
One of the main purposes of Chainlink staking is to strengthen the cryptoeconomic history of the community. This will become feasible once the staking system introduces a way to punish fraudulent validators.
To put it another way, the oracle community will not provide a financially feasible incentive for individuals who would launch attacks against blockchains like Bitcoin and Ethereum.
Tokens that were staked would produce annual returns of 5%.
Another advantage of staking is that it promotes cooperation across the entire Chainlink network. As participation won’t be restricted to those who meet certain requirements, such as having their own nodes up and running, virtually anyone will be able to become a part of it. A LINK token holder can delegate access to their tokens to a reliable node operator.
The creators of Chainlink announced the annual return of 5% for staking hyperlink tokens in a blog post published at the beginning of June.
