I've been warning for a while I think the whole concept of the Chainlink Reserve is genius.
From a market psychology perspective, it is simple and powerful. For the first time, we are about to see a visible and non-technical indicator of how much real revenue is flowing to @chainlink for its services. This has been a major point of debate for years.
The text also addresses another long-standing FUD narrative around the utility and purpose of $LINK. The Reserve does this by becoming a flywheel.
They seeded it with approximately US$ 1 million in LINK. Just that alone triggered a price rise upon announcement, which immediately made the Reserve even more valuable. Now, everyone is speculating about what future deposits will look like.
Next week's deposit will be important because the market will treat it as a signal of what to expect going forward. If the number is significant, this speculation accelerates.
And the worst part is that the LINK in the Reserve is supposedly locked for years. This creates the perception of a declining net supply. Price increases make the Reserve more valuable. People see this and want more LINK.
As adoption expands and more Chainlink services are utilized, weekly revenues may increase. If these increases are reflected in the Reserve deposits, the feedback loop will strengthen.
The price goes up → The value of the reserve goes up → The perceived supply decreases → More buying → More adoption → More revenue → Larger deposits → The price goes up again.
You don't hold enough!