ChainlinkforforSmart Contract EconomyProvided the underlying infrastructure, built nearly 1,000, guaranteed a total value of tens of billions of dollars for hundreds of projects. As Chainlink continues to integrate into newblockchainAnd more and more oracle services are released, and the value of applications in its ecology is also increasing. Therefore, it is particularly critical to further upgrade the security of the Chainlink network. Chainlink will launch version 2.0 of its economic model and enter a new stage of development. This stage will focus on the sustainable development and security of the network, and staking is the starting point for all of this.

Equity pledgeThis core mechanism aims to create a new encryption economic security layer for Chainlink, and further incentivize the orderly operation of the network by establishing an encryption economic reward and punishment mechanism.Chainlink StakingChainlink Staking

This article will elaborate on the long-term goals of the Chainlink equity pledge mechanism, the initial implementation plan in the second half of 2022, and the subsequent expansion plan.

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The Chainlink staking mechanism revolves around four long-term goals. These four goals provide the guiding principles for the development of Chainlink's staking mechanism, and will lay the foundation for its success in the process of continuous optimization and iteration.

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1) Enhancing cryptoeconomic security and user protection for Chainlink oracle services

The main goal of the Chainlink staking mechanism is to enhance the cryptoeconomic security and user protection of the Chainlink oracle service. The specific method is to lock the LINK pass to provide guarantee for the service level of the oracle machine. If the oracle network fails to fulfill the service level agreement (SLA) on the chain, a part of the pledged LINK token will be deducted and this part of the token will be redistributed. In addition, we have also studied the loss prevention mechanism, using a part of the deducted LINK token to protect the users of the oracle service from economic loss.

Chainlink has been deeply integrated into various top smart contract applications. Therefore, further improving the security and user protection of the oracle machine through equity pledge will play a key role in promoting the multi-chain smart contract economy, and will eventually cover all major traditional industries. Market value in trillions of dollars.

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2) Motivate the community to participate in the Chainlink network

Ecological participants including community members and node operators can pledge LINK tokens in the pledge pool according to different quotas. In addition, node operators can also create or use proxy mechanisms to provide community members with additional LINK token pledge channels.

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3) Long-term effective participation and continuous rewards

• The third goal of staking is to generate and distribute staking rewards for stakers. We anticipate that there will be a variety of different channels for distributing rewards to stakers in the future. As network usage continues to grow and service fees continue to accumulate, the proportion of staking rewards from non-native token issuance channels will increase.

• Initially, we will issue LINK tokens natively to distribute staking rewards to stakers, and this channel will gradually weaken later, and stakers will increasingly receive staking rewards from other channels.Afterwards, we will learn from the Chainlink oracle'suser service fee

A part of it will be distributed to stakers as staking rewards. The more users pay for Chainlink oracle services, the more rewards are awarded to stakers who stake LINK tokens for those services.Another channel for distributing staking rewards is the "Ecological partner growth plan

In addition, we are still researching the loss prevention mechanism, which can prevent users of Chainlink oracle service from suffering economic losses caused by the breach of the oracle network, so as to further increase user service fees. The higher the guaranteed value, the greater the need for loss prevention, and the higher the staking reward that the staker can obtain.

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4) Through the equity pledge mechanism, empower node operators to obtain higher value oracle tasks

It is worth mentioning that screening nodes based on the two indicators of reputation and stake pledge will improve the cryptoeconomic security of end users using Chainlink oracle services. Establishing a more comprehensive reputation mechanism for node operators can also give users a more intuitive understanding of node performance and incentive mechanisms.

Note: Chainlink’s equity pledge mechanism optimizes the security effect curve of the oracle network

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Preliminary Implementation Plan of Chainlink’s Equity Pledge Mechanism

Before discussing the design concept and initial parameters of the equity pledge mechanism in depth, it must be emphasized that as more oracle networks and services are created, Chainlink’s service fee income will continue to grow, and Chainlink’s equity pledge The mechanism will therefore continue to iterate. The focus of the preliminary landing plan is to create a simple and safe foundation, and to continuously expand the scope of application based on user feedback, and gradually add more complex functions.Price FeedsThe development roadmap of the staking mechanism will be similar to that of Chainlink

. Initially we released only one ETH/USD Price Feed on Ethereum, run by three oracle nodes; now we have nearly 1,000 Price Feeds, run by more than 50 leading node operators, covering 12 zones Blockchain and layer 2 networks. Through this pragmatic approach, we identify risks and opportunities at an early stage to scale more steadily to meet growing user needs.

The following development roadmap details the core function release plans for different versions of the Chainlink staking mechanism. We may adjust some of these details based on user feedback and actual usage to better meet user needs. In addition, in order to control risks and simplify the deployment process, specific functions in each version may be released at different points in time.

Note: An overview of the development roadmap of the Chainlink equity pledge mechanism

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Reputation Framework and Alerting Mechanism

The v0.1 version will focus on introducing the reputation framework and alarm mechanism, laying a key foundation for other functions such as the release penalty mechanism in subsequent versions. In order to ensure the robustness of the actual operation, these two systems will be used to track the ETH/USD Price Feed on Ethereum.

It is worth mentioning that stakers will have the opportunity to monitor the price feed and issue an alarm. Once the ETH/USD price feed fails to meet the requirements of the service level agreement in time, they will be rewarded. In the v0.1 version, the main parameter that triggers the alarm is the uptime of the price feed, and other parameters will be included in subsequent versions.

The core of Chainlink’s equity pledge mechanism v0.1 is the reputation framework and the alarm system. These two modules will continue to iterate and introduce a linear security mechanism, which will be expanded to"Chainlink 2.0 White Paper"The "Superlinear Security Guarantee Mechanism" mentioned in .

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Participate in equity pledge

The v0.1 version of the pledge pool will set an upper limit on the scale, and set different quotas for node operators, community members, and coordinators of the oracle network. The initial size of the pledge pool is 25 million LINK tokens, and according to actual demand, it is planned to increase to 75 million LINK tokens a few months after the launch. Afterwards, the staking pool will continue to expand to support more data feeds and oracle services.

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Stake rewards

Stake rewards

In v0.1, we will issue native tokens to pledgers as pledge rewards, and the target base annualized pledge reward is 5%. After the v1 release, the annualized staking rewards will change accordingly based on user fees and commitment lock-up periods. Stakers receive higher staking rewards if they commit to locking for a longer period of time.

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Summarize

The launch of the staking mechanism is a key milestone for Chainlink, marking the entry of Chainlink's economic model into the 2.0 era, which revolves around long-term security and network economics. The initial implementation plan of Chainlink’s equity pledge mechanism focuses on minimizing participation risks and laying a solid foundation for long-term development. Our ultimate goal is to develop Chainlink into a global standard, build a growing and sustainable user base, bring higher income opportunities to stakers, and improve the encryption economy security and user protection of the entire network.

To learn more, please visitchain.link,subscriptionChainlink newsandTwitter、YouTubeandRedditFollow Chainlink on Twitter.

Follow Chainlink on Twitter.as well as、"Chainlink 2.0 White Paper"as well asdeveloper documentation。

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developer documentation