Chainlink Launches Chainlink Reserve to Boost LINK Utility and Network Sustainability
Chainlink has just announced the launch of the Chainlink Reserve, a strategic upgrade designed to accumulate LINK tokens using both offchain revenue from large enterprises and onchain service usage. This new reserve aims to strengthen the long-term growth and sustainability of the Chainlink Network as it becomes the standard for enterprise and DeFi integrations.
What has been done?
- The Chainlink Reserve leverages Payment Abstraction, a mechanism that converts payments—whether made in stablecoins, gas tokens, fiat, or other crypto—into LINK, using Chainlink services and decentralized exchange infrastructure.
- Already, over $1 million worth of LINK has been accumulated in the Reserve during its early launch phase. Link token deposits are public and tracked at reserve.chain.link.
- Chainlink’s offchain revenue stream, mostly from major banking and capital markets partners, is being funneled directly into LINK acquisitions.
- No withdrawals from the Reserve are anticipated for several years; the reserve is set to grow steadily as more revenue gets converted and deposited.
- 50% of Chainlink’s SVR (Smart Value Recapture) fees are now redirected to fund the reserve, further connecting protocol usage to LINK demand.
- The launch has driven LINK price rallies and is widely seen as a pivotal industry event, with expectations that growing enterprise usage and blockchain adoption will compound the Reserve’s growth.
