Chainlink Unveils New Reserve Initiative for LINK Tokens

Chainlink’s new strategic LINK reserve fund, initiated at $1 million and leveraging Payment Abstraction for enabling cross-chain payments, is designed to bolster network security, long-term growth, and sustainability amid rising LINK prices.

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Summary

Chainlink announced the creation of a strategic LINK reserve fund to support long-term network growth and sustainability. The fund, initiated with a $1 million LINK purchase, will be funded by on-chain service fees and off-chain enterprise revenue and uses Payment Abstraction to enable cross-chain payments. Co-founder Sergey Nazarov emphasized the reserve’s role in enhancing network security as LINK trades above $18, up over 10% from the previous day.

Terms & Concepts
  • Chainlink Reserve: A dedicated on-chain system designed to accumulate LINK tokens from diverse revenue streams.
  • Payment Abstraction: A mechanism that automatically converts payments from various tokens into LINK tokens.
  • Cross-chain payments: Transactions that operate across different blockchain networks to enable interoperability.