How to stake Chainlink (LINK)
THERE IS NO WAY. Many users wonder: can LINK tokens be staked? Developers have taken a different path from the classic delegation model used by other popular blockchain projects. In this article, we will explain how the Chainlink blockchain works and why you can’t stake LINK tokens.
Why you can’t stake Chainlink (LINK)
Instead of staking, users have to launch their own node to receive rewards in LINK tokens — this is the only way to generate revenue in Chainlink.
During last year the usage of Chainlink Data Feeds has increased exponentially reaching 50m+ cumulative on-chain calls in February 2022 — an almost 6,000% increase from February 2021. As a result of high demand, greatly increased interest in Chainlink staking. But it’s not that simple. Now we will explain how staking works on this blockchain platform.
What role do validators play in the Chainlink ecosystem?
The Chainlink network consists of blockchain oracles that perform a greater range of tasks than the nodes of many other decentralized platforms. Oracles interact with smart contracts and transmit data from external sources to them. In this way, Chainlink combines the Web3 blockchain ecosystem and the classic Web. In other words, oracles serve as a bridge between on-chain and off-chain data.
So, Chainlink oracles provide external data to smart contracts and support the ecosystem of the project, receiving remuneration in LINK tokens for this. Delegates would not be able to perform these functions. This means that the rewards for staking would be undeserved.
It is also planned to add collateral. Oracles will provide collateral before doing their job. These measures will improve the quality of the data provided. If the node does not meet any requirements of the smart contract or is idle, disrupting the normal operation of the decentralized application, the Deposit will be written off as a fine for violating the terms.
Currently, Chainlink operators can perform work and supply data to smart contracts, receiving their own remuneration, but staking will be available in a later version of the mainnet when oracles will be able to make an advance payment to accept the task.
So there’s no way I can get a Chainlink staked?
Yes, you can’t stake LINK. However, it is planned to add this feature in the future, which will be implemented along with the reputation system. However, you can run your own node or oracle, accept tasks and receive rewards for completing them. There is another way — to join a staking pool, for example, Everstake.
It will be easier to participate in the staking pool since the main work is performed by the main blockchain operator, but it will charge a fee for this, albeit a small one.
The Everstake validator helps the Chainlink ecosystem develop and provides technical solutions that simplify the work of the blockchain platform users and thus allow them to receive rewards without additional workload.
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