Chainlink Launches On-Chain Reserve to Boost LINK Liquidity and Stability

Chainlink has launched the Chainlink Reserve, an on-chain contract designed to serve as a strategic reserve of LINK tokens, with the aim of enhancing token liquidity and reinforcing ecosystem stability [1]. The initiative leverages Chainlink’s Payment Abstraction infrastructure, which automatically converts revenue from on-chain services and business operations into LINK tokens. This system allows users to transact in various formats, such as gas tokens or stablecoins, while payments are converted into LINK through Chainlink’s services and decentralized exchanges like Uniswap V3 [1].

The reserve has already accumulated over $1 million in LINK, and the project team has indicated no immediate plans to utilize these funds, with gradual growth expected over the coming years as more income is converted into the token [1]. To ensure transparency, the team has launched an analytics dashboard for the public to monitor the reserve’s status in real-time [1].

Following the announcement, the price of LINK showed a positive response, reaching above $19.30 at the time of reporting [1]. This uptick was accompanied by increased accumulation from significant investors. Santiment noted a rise in the number of large LINK holders, particularly those holding between 100,000 and 1 million tokens. After the price crossed $18.40, this group increased by 4.2%, and in August alone, these holders added 0.67% to their total LINK holdings [1]. These trends reflect growing confidence among major investors in the token’s value and long-term prospects.

The Chainlink Reserve, together with the Payment Abstraction infrastructure, demonstrates Chainlink’s commitment to deepening token liquidity and building a sustainable financial foundation for its ecosystem [1].

Source: [1] Chainlink Introduces On-Chain LINK Reserve to Boost Token Liquidity (https://coinpaper.com/10431/chainlink-introduces-on-chain-link-reserve-to-boost-token-liquidity)