Chainlink's Reserve converts offchain revenue from enterprise adoption to LINK.

Chainlink's Reserve converts offchain revenue from enterprise adoption to LINK.

Chainlink has announced the launch of the Chainlink Reserve, a strategic onchain reserve of LINK tokens designed to support the long-term growth and sustainability of the Chainlink Network. The Reserve is being built by accumulating LINK tokens using offchain revenue from large enterprises adopting the Chainlink standard and onchain service usage [1].

The Chainlink Reserve is an onchain smart contract on Ethereum that stores the strategic reserve of LINK funded by revenue. The Reserve contract features a multi-day timelock as an additional security measure before withdrawal requests are processed. The Reserve has already accumulated over $1MM worth of LINK from this early stage launch phase, with expectations for gradual growth in the coming months as more revenue is converted into LINK and placed into the Reserve [1].

Chainlink Payment Abstraction, an onchain infrastructure that processes user fee payments in LINK and reduces payment friction, is a key component of the Chainlink Reserve. It enables users to pay for Chainlink services in their preferred form of payment, which is then programmatically converted to LINK using a combination of Chainlink services and decentralized exchange infrastructure [1].

The introduction of the Chainlink Reserve complements Chainlink's existing economic pillars for creating a sustainable oracle economy. These pillars include user fee growth, enterprise integrations, usage-based payments, revenue-sharing, and the build program. Enterprise integrations and usage-based payments have already generated hundreds of millions of dollars in revenue, positioning Chainlink as the secure connectivity layer for the entire blockchain industry [1].

The Chainlink Reserve is expected to grow over time as the industry demand for Chainlink's unique capabilities increases. As more enterprises adopt Chainlink services, the Reserve is anticipated to benefit from this growing adoption, further accelerating the accumulation of LINK tokens. The analytics dashboard for the Chainlink Reserve can be found at reserve.chain.link [1].

References:
[1] https://blog.chain.link/chainlink-reserve-strategic-link-reserve/