Chainlink (LINK) Tokenomics, Staking & Value Accrual – 2025 Update

CryptoChainlinkDeFiTokenomics

TL;DR (Non-Technical Summary)

  • Token Supply: Chainlink’s LINK token has a fixed total supply of 1 billion, with about 638.1 million LINK circulating as of Feb 10, 2025 (Chainlink Circulating Supply). The remaining ~36% of tokens are held in reserve by Chainlink (in designated wallets) for ecosystem growth and security. No new tokens beyond the 1B cap will be minted, so supply is limited and any future distribution comes from this pre-minted reserve.

  • Current Tokenomics & Unlocks: Those non-circulating tokens are gradually released to support network development – e.g. rewarding node operators, funding development, and seeding ecosystem programs. Chainlink’s strategy (dubbed “Economics 2.0”) emphasizes sustainable usage-based incentives over large inflationary giveaways (Chainlink Staking | Chainlink Economics 2.0). This means over time, token releases (“unlocks”) are expected to slow as the network generates more fees on its own. Large sudden unlock events are not part of Chainlink’s model; instead, tokens are allocated in measured ways (such as to support the new staking program or partner incentives) to avoid flooding the market.

  • Staking v0.2: Chainlink Staking v0.2 (launched Q4 2023) lets LINK holders stake tokens to help secure oracle services and earn rewards (Chainlink Staking | Chainlink Economics 2.0) (Chainlink Staking v0.2 Overview | Chainlink Blog). The v0.2 staking pool is capped at 45 million LINK (about 7–8% of the current supply) (Chainlink Staking | Chainlink Economics 2.0). Regular holders (“Community Stakers”) can stake up to 15K LINK each, and Node Operators have a separate allotment (up to 75K each) (Chainlink Staking | Chainlink Economics 2.0). The base reward rate is ~4.5% in LINK for stakers, with a portion of community rewards automatically shared with node operators as an extra incentive (Chainlink Staking v0.2 Overview | Chainlink Blog). Notably, if you initiate a unstake and then don’t withdraw within the allowed window, your LINK is automatically re-staked into v0.2 (Chainlink Staking v0.2 Overview | Chainlink Blog) (Chainlink Staking v0.2 Overview | Chainlink Blog). This “unstaking cooldown” mechanism (28-day cooldown + 7-day withdrawal window) ensures the staking pool remains robust – if you miss the window, your stake just continues as before by design.

  • Staking Roadmap: Today’s staking secures a limited set of Chainlink services (like certain data feeds with an alert mechanism). Looking forward, Chainlink plans to expand staking to cover more of its services – for example, securing Cross-Chain Interoperability Protocol (CCIP) operations, additional price feeds and oracle networks, Data Streams (high-frequency data oracles), and Functions (off-chain compute) as those grow. In short, staking will evolve from the current beta into a broader “cryptoeconomic security” layer across Chainlink’s entire platform (Chainlink Staking | Chainlink Economics 2.0). Future versions (v1.0 and beyond) are expected to introduce slashing and reward mechanisms tied to performance of many services, further incentivizing good behavior by node operators in CCIP transactions, data delivery, randomness (VRF), automation, etc.

  • Node Operator Incentives & Fees: Rather than paying node operators purely with new token inflation, Chainlink is shifting to a fee-based compensation model. Node operators earn user fees for the services they provide – e.g. a dApp pays a fee (usually in LINK) for using a price feed, making a CCIP transfer, calling a random number (VRF), or executing an automation task. These fees go to the oracle nodes serving that request. In the past, Chainlink subsidized many oracle networks by paying node operators from its treasury (to bootstrap the network and offer data feeds cheaply), but this is being phased out (Sustainable Oracle Economics Are Critical to the Success of Web3). Chainlink Economics 2.0 programs like BUILD and SCALE help here:

    • The BUILD program has projects commit a portion of their own tokens or fees to Chainlink in exchange for enhanced oracle services, creating external rewards for Chainlink node operators and stakers (Chainlink Economics 2.0) (Chainlink: The Platform for Building the Verifiable Web).

    • The SCALE program gets layer-1 and layer-2 blockchains to cover the operating costs of Chainlink oracles on their chain, instead of Chainlink Labs having to subsidize them (Chainlink Economics 2.0). Overall, the long-term model is that node operators are paid by the ecosystem (dApp users, partner chains, protocols) rather than by continuous LINK token emissions. This is designed to be more self-sustaining: as Chainlink usage grows, node revenue grows in tandem, while reliance on “free” handouts drops.

  • Payment Abstraction & Universal Gas: Chainlink is introducing a Payment Abstraction layer that will make LINK the “universal gas token” for all Chainlink services, without forcing every user to hold LINK directly (Chainlink: The Platform for Building the Verifiable Web). In practice, this means a user will be able to pay for Chainlink services using any currency or token – for example, a stablecoin, ETH, or even a credit card – and behind the scenes, that payment will be automatically converted into LINK to compensate node operators (Chainlink: The Platform for Building the Verifiable Web) (Chainlink Product Update: Q1 2024). This is possible because Chainlink’s own price oracles can determine fair exchange rates in real time (Chainlink: The Platform for Building the Verifiable Web). The benefit is a smoother user experience (users pay in whatever asset is convenient) while still driving demand for LINK (since the protocol will swap those payments for LINK). Essentially, “pay in anything, nodes receive LINK” (Chainlink: The Platform for Building the Verifiable Web) (Chainlink: The Platform for Building the Verifiable Web). This feature is currently in development (under active testing/audits via the Payment Abstraction GitHub) and will reduce friction for adoption: dApp developers won’t need to manage LINK to use Chainlink, yet LINK accrues value as the common payout token.

  • Value Accrual & LINK Demand: All these mechanics are geared toward making LINK intrinsically tied to Chainlink network usage. As more projects and enterprises use Chainlink oracles and CCIP, they will be paying fees (in LINK or converted into LINK), increasing buy-pressure and on-chain activity for LINK (Chainlink Product Update: Q1 2024) (Chainlink: The Platform for Building the Verifiable Web). At the same time, staking locks up a significant amount of LINK in smart contracts (currently tens of millions of tokens), limiting liquid supply. Crucially, Chainlink’s move from subsidy (inflationary rewards) to fee-based (non-inflationary) rewards means the network can grow without continuously diluting LINK’s supply (Chainlink Staking | Chainlink Economics 2.0). In the long run, staking rewards to LINK holders are expected to come from real usage fees and perhaps partner incentives, not from printing new tokens (Chainlink Staking | Chainlink Economics 2.0) (Chainlink Staking | Chainlink Economics 2.0). This alignment implies that if network usage and demand for oracle services grow, LINK’s utility and demand grow alongside it, while supply remains capped. Over time, this dynamic is intended to accrue value to LINK and support its price: more demand (for fees, staking, collateral, etc.) against a fixed maximum supply is a classic recipe for value appreciation, assuming Chainlink’s services see widespread adoption.

Detailed Analysis and Breakdown

1. Current and Planned Tokenomics

Circulating vs Total Supply – Chainlink’s LINK token has a fixed total supply of 1,000,000,000 LINK (1 billion) that was minted at inception (Chainlink Circulating Supply). As of February 10, 2025, approximately 638,099,970 LINK are in circulation (about 63.8% of the total). This figure is dynamic but is updated by official sources (the Chainlink website’s supply page) in real time. The key point is that LINK’s supply is hard-capped – no new tokens will be created beyond the original 1B. This contrasts with some protocols that have ongoing inflation; Chainlink’s approach means any increase in circulating supply comes from that pre-existing pool of tokens that were not yet circulating.

Non-Circulating Supply and Allocation – The ~36% of LINK not yet circulating (roughly 361.9M tokens) is held in known reserve wallets (Chainlink Circulating Supply) managed by Chainlink (Chainlink Labs and/or the nonprofit Chainlink Foundation). These tokens were allocated from the token’s genesis for purposes like node operator rewards, ecosystem grants, and team finances. In the original token distribution, a significant portion was earmarked to incentivize node operators and oracle network growth, and another portion for the team and company to fund development. Over time, Chainlink has used parts of these reserves to bootstrap the network – for example, distributing tokens as rewards for early node operators, and to fund research and development of the oracle infrastructure.

Plans for the Remaining Supply – Chainlink’s official stance under the “Economics 2.0” framework is to use its treasury strategically to promote network effects, while prioritizing long-term sustainability (Chainlink Economics 2.0) (Chainlink Economics 2.0). This means the remaining tokens are not simply being dumped into the market, but rather released gradually in line with growth. For instance: when Chainlink launched Staking v0.1 and v0.2, it allocated a set amount of LINK rewards for stakers – effectively moving some tokens from the reserve into circulation as staking rewards. Another example is ecosystem programs like the Chainlink BUILD program, where projects entering the program commit to pay a portion of their own token supply or fees to Chainlink service providers (sometimes alongside small LINK grants from Chainlink to those projects to support integration – though the primary idea is the projects pay in, rather than Chainlink paying out) (Chainlink Economics 2.0). In essence, remaining tokens will likely be used to further strengthen the network: by rewarding service providers (node operators, stakers) during this early growth phase, funding community grants and hackathons, and possibly strategic partnerships.

It’s worth noting that Chainlink does not follow a fixed “token unlock schedule” like some ICO projects do. Instead of time-based unlocks, the release of tokens is at the discretion of Chainlink’s management, guided by network needs. Historically, this has meant periodic allocations for things like development funding and node rewards. For example, through 2022–2024, Chainlink Labs periodically moved tokens from the reserve wallets to exchanges or OTC deals, presumably to fund operations (this was observed via on-chain analysis by third parties). While such sales can introduce supply and potentially short-term price pressure, they are generally seen as funding the growth that makes the network (and token) more valuable long-term.

Economic Implications of Unlocks – Whenever Chainlink deploys some of its reserve tokens (whether for paying node operators, distributing staking rewards, or funding new initiatives), those tokens enter circulation. This can be thought of as a one-time inflation from the perspective of the market, even though total supply doesn’t change. The implication is that there is a dilution effect if demand doesn’t change – i.e., more tokens in circulation could dampen price if not matched by increased usage or buyers. Chainlink’s strategy, however, aims to counterbalance any token release with corresponding utility or value added. For instance, releasing tokens as staking rewards is intended to improve network security, which in turn should attract more users to the network (driving more fee demand for LINK). Similarly, using tokens to incentivize node operators ensures data feeds remain reliable and high-quality, which makes Chainlink more indispensable to DeFi and other sectors – eventually bringing in more volume and fee revenue.

Under “Chainlink Economics 2.0,” the goal is to reach a state where the network can largely run on its own economic activity (user fees) and rely less on token subsidies (Sustainable Oracle Economics Are Critical to the Success of Web3). In an official Chainlink blog, the team notes that early-stage subsidization (using tokens to incentivize participation) was crucial to bootstrap Web3 networks, but that it’s not sustainable long-term (Sustainable Oracle Economics Are Critical to the Success of Web3). As the network matures, fees from users should grow to replace token grants as the primary reward for nodes and stakers (Sustainable Oracle Economics Are Critical to the Success of Web3) (Sustainable Oracle Economics Are Critical to the Success of Web3). This implies that the remaining reserve tokens will be conservatively managed: rather than flooding the market, Chainlink intends to gradually reduce the rate at which it relies on those tokens. In fact, the staking design explicitly mentions that emissions-based rewards will trend toward zero as external (fee-based) rewards grow (Chainlink Staking | Chainlink Economics 2.0).

In summary, the current tokenomics of LINK can be described as:

  • Fixed, capped supply with a majority already circulating and the rest held for network purposes.

  • No ongoing inflation, only strategic distribution of existing tokens.

  • Planned slow release of reserves in parallel with growing network demand, aiming for a handoff where usage fees, not token inflation, fund the ecosystem.

This approach, if successful, means LINK’s supply side remains relatively tight, especially compared to other protocols that print new tokens for rewards. And any tokens that do enter circulation are intended to fuel growth, which ideally drives greater demand for LINK (offsetting the increase in supply). It’s a careful balancing act between incentivizing network participants now and preserving value for token holders long-term. Thus far, about 638 million LINK are out, and the roadmap suggests that while more tokens will gradually enter circulation, it will likely be done in concert with major network milestones (like new staking releases, new services) rather than arbitrarily.

Staking v0.2 Overview – Chainlink Staking is a cornerstone of Chainlink Economics 2.0, adding a crypto-economic security layer to the oracle network. The current version, Staking v0.2, launched in late 2023 as an upgrade to the initial v0.1 beta. This upgrade expanded the staking system in several ways: increasing the pool size, introducing a dynamic rewards model, and setting the stage for future features like slashing.

  • Pool Size and Participation: Staking v0.2 launched with a total pool cap of 45 million LINK (Chainlink Staking | Chainlink Economics 2.0). This is a roughly 80% increase from the 25M cap in v0.1, allowing more LINK holders to participate. Out of the 45M:

    Each address has limits to prevent one entity from consuming too much of the pool. Community members can stake minimum 1 LINK, up to 15,000 LINK per address, as long as space is available (Chainlink Staking | Chainlink Economics 2.0). Node operators have higher per-operator limits (1,000 min, up to 75,000 max) (Chainlink Staking | Chainlink Economics 2.0). The pool filled in phases (Priority Migration for v0.1 stakers, then Early Access for eligible addresses, then General Access) (Chainlink Staking | Chainlink Economics 2.0) (Chainlink Staking | Chainlink Economics 2.0).

  • Security Role of Staking: The fundamental purpose of staking is to have participants commit LINK as collateral to back oracle performance guarantees (Chainlink Staking | Chainlink Economics 2.0). In v0.2, staked LINK is used as a backstop for certain “in-scope” oracle services, meaning if those services fail or are manipulated (and an alert is raised correctly), stakers could potentially be slashed in future iterations. Currently, Chainlink has mentioned that v0.2 continues to secure the ETH/USD price feed on Ethereum with an alerting mechanism (as v0.1 did), but with more community participation. Over time, the idea is that more feeds and services will be secured by stake, increasing the overall assurance that Chainlink data and services remain reliable.

  • Rewards Mechanism: Stakers earn rewards in LINK for their service. Importantly, v0.2 shifted to a variable reward rate model (Chainlink Staking | Chainlink Economics 2.0). Instead of a fixed APR regardless of pool fill (as in v0.1’s 5% flat), v0.2 sets a fixed total reward amount per time and distributes it among stakers, so the actual APR “floats” based on how full the pool is (Chainlink Staking | Chainlink Economics 2.0). If the pool is full (45M staked), community stakers get a base floor rate ~4.5% annually in LINK (Chainlink Staking v0.2 Overview | Chainlink Blog). If the pool were less than full, the same fixed reward pie is split among fewer LINK, so individual APR would be higher (and conversely slightly lower if somehow over-allocation, though the cap prevents that) (Chainlink Staking | Chainlink Economics 2.0).

    Additionally, Node Operator stakers receive a portion of the community rewards. Specifically, 4% of the community stakers’ rewards are redirected to node operator stakers as “Delegation Rewards” (Chainlink Staking v0.2 Overview | Chainlink Blog). This effectively means community stakers earn slightly less (their effective rate is ~4.32% when pool is full) and node operators earn extra on top of their 4.5% base (Chainlink Staking v0.2 Overview | Chainlink Blog). This design aligns incentives: node operators (who actually perform the oracle work) are rewarded more for also staking, and it mimics a delegation model (community stake “boosts” node stake returns) (Chainlink Staking v0.2 Overview | Chainlink Blog).

  • Unbonding and Auto-Restake: Staking v0.2 introduced an unbonding period to enhance security. When a staker wants to withdraw, they must initiate an “unstake” and wait 28 days (cooldown), then a 7-day window to claim (Chainlink Staking v0.2 Overview | Chainlink Blog). This delay ensures that if a node misbehaved, there’s time to potentially slash their stake or stop them from running off with funds (it’s a common mechanism in PoS systems for security). A very user-friendly feature here is that if the staker does nothing after the cooldown (i.e., doesn’t claim the tokens during the 7-day window), the system will automatically re-stake their LINK into v0.2 (Chainlink Staking v0.2 Overview | Chainlink Blog) (Chainlink Staking v0.2 Overview | Chainlink Blog). In other words, your stake “reenters” the active pool by default if you miss the withdrawal window – so you continue earning rewards and stay secured. This is convenient: someone who changes their mind about unstaking can simply not withdraw, and their stake remains active without requiring a manual restake transaction (Chainlink Staking v0.2 Overview | Chainlink Blog). It also prevents accidental loss of rewards if someone forgets to claim in time.

  • Reward Distribution and Ramp-Up: To encourage long-term staking, v0.2 splits rewards into “Claimable” and “Locked” portions subject to a 90-day ramp-up (Chainlink Staking v0.2 Overview | Chainlink Blog) (Chainlink Staking v0.2 Overview | Chainlink Blog). When you first stake, you start at 0% of your max rate, and linearly scale up to 100% over 90 days (Chainlink Staking v0.2 Overview | Chainlink Blog). During that period, part of your earned rewards remain locked (unclaimable) until the ramp-up is completed – at which point past rewards unlock. If you withdraw any staked LINK, any still-locked (unvested) rewards are forfeited back to the pool for others (Chainlink Staking v0.2 Overview | Chainlink Blog). This mechanism incentivizes stakers to stay at least ~3 months to earn full rewards, thereby improving pool stability (less churn). It’s also designed so that if someone exits early, their would-be rewards boost the remaining stakers, which compensates those who remain (and disincentivizes short-term farming).

  • No Slashing (Yet): In v0.2, slashing (the punitive cutting of staked tokens for misbehavior) is still more theoretical than active. There is an “alerting” system where certain community members or nodes watch the feed’s performance (like if an update is missed or wrong) and can flag an issue – in v0.1, this was tested but no slashing actually occurred, partly because node performance remained correct. Slashing is expected to become more real in future versions when more services and explicit performance metrics are tied to staking. The current phase focuses on getting the economics and participation right, while carefully moving toward a fully operational slashing model.

Staking Roadmap – Expanding to More Services: The ultimate vision is for Chainlink staking to cover the broad range of Chainlink services as an additional security layer. Official communications hint that “staking continues to evolve to secure additional Chainlink services” (Chainlink Staking | Chainlink Economics 2.0). What might this include in the coming months/years?

  • Price Feeds & Data Oracles: Beyond the initial few feeds, eventually community stake could back many of the high-value data feeds (crypto prices, FX rates, commodities, etc.). This might be done via a generalized staking pool that covers many feeds, or potentially service-specific staking. Chainlink has not confirmed service-specific staking yet, but one could imagine, for example, separate staking pools or partitions for different categories of data. Regardless, more feeds secured means a larger staking system and more stake needed.

  • CCIP (Cross-Chain Interoperability Protocol): CCIP is a major Chainlink service (a cross-chain messaging and token transfer network), and it introduces new risks (bridging exploits, etc.). Sergey Nazarov (Chainlink’s co-founder) and the team have indicated that staking will likely play a role in CCIP’s security – possibly via the Risk Management Network of CCIP. The Risk Management Network is a set of nodes that monitor CCIP transfers for compliance and safety; it’s conceivable that these nodes will need to stake LINK and can be slashed if they fail to catch issues. While details are still forthcoming, securing CCIP with staked LINK would extend Chainlink’s cryptoeconomic security beyond data into cross-chain connectivity, which is a logical next step.

  • Chainlink Data Streams: Data Streams is a newer offering for high-frequency off-chain data (particularly for traditional finance or advanced DeFi use cases). If Data Streams provides price updates at sub-second intervals, those delivering nodes need strong guarantees. Staked LINK might be required for nodes to participate in serving Data Streams, ensuring they don’t cheat or they have something at risk if they do. We can expect staking parameters to adjust to the needs of high-throughput oracle services like this, perhaps with different slashing conditions.

  • Chainlink Functions and Automation: Chainlink Functions (which allows custom off-chain computation) and Automation (decentralized cron jobs) extend Chainlink into compute, not just data. As these services mature, staked LINK could also secure them. For example, a node that offers “Functions” execution might stake LINK and be slashed if it produces a wrong result that violates the agreed computation (detected via verification by other nodes). Similarly, Automation nodes could be required to stake to ensure they trigger contracts on time – missing a trigger might result in slashing if it causes damage. This is speculative, but in line with the idea of Chainlink becoming a “decentralized computing marketplace” where users can dial up security by requiring more stake behind their tasks (Chainlink: The Platform for Building the Verifiable Web) (Chainlink: The Platform for Building the Verifiable Web).

  • Staking v1.0 and Beyond: Chainlink has referred to v0.1 and v0.2 as initial phases, with a future v1.0 (and beyond) being the production-ready staking. We can anticipate v1.0 to potentially remove the “beta” label, allow a much larger amount of LINK to be staked (as the blog hints: “over time, the pool size cap is expected to increase, particularly as staking evolves to support additional services” (Chainlink Staking | Chainlink Economics 2.0)), and incorporate full slashing and perhaps multiple reward sources. In the Chainlink Staking v0.2 documentation, it explicitly states the pool cap helps maintain sustainability “before new sources of staking rewards, such as user fee rewards, are made available” (Chainlink Staking | Chainlink Economics 2.0). That signals that in the future, rewards to stakers will come from actual user fees of Chainlink services (e.g., a cut of CCIP fees, a cut of Data Stream subscription fees, etc.), not just from Chainlink’s token allocation. This would be a big step toward a self-sustaining oracle economy.

In summary, today’s staking v0.2 is a stepping stone: it increases community involvement and lays the groundwork (with features like unbonding and variable rewards) for a much larger, more feature-rich staking system. As Chainlink rolls out new services (like CCIP) and gains adoption, staking is slated to expand in scope. The community can expect more opportunities to stake LINK across different verticals of Chainlink’s network, all with the aim of strengthening the network’s trust-minimization. And as those come, the staking framework is built to handle new reward inputs and slashing conditions via its modular design (Chainlink Staking v0.2 Overview | Chainlink Blog).

For now, about 45M LINK is staked in v0.2, earning around 4.5% base rewards (4.32% effective rate), and auto-renewing if withdrawals aren’t claimed (Chainlink Staking v0.2 Overview | Chainlink Blog) (Chainlink Staking v0.2 Overview | Chainlink Blog). This has already taken a notable chunk of LINK off the liquid market (nearly ~7% of total supply locked in staking contracts). With planned expansions, staking could grow to secure billions of dollars of value in various services, potentially involving a larger portion of the LINK supply as the network usage scales.

3. Node Operator Fees & Incentives

Chainlink node operators are the backbone of the oracle network – they run the infrastructure that delivers data on-chain, executes decentralized computations, and moves messages across chains. Ensuring these node operators are properly incentivized (i.e., paid) is critical for the long-term sustainability of Chainlink. The tokenomics around node operators have been evolving from a startup phase (subsidized by Chainlink tokens) to a mature phase (funded by user fees and ecosystem contributions).

Historical Subsidies: In the early days of Chainlink (2019–2021), many oracle services – especially the popular Price Feeds – were free for consuming dApps. For example, DeFi platforms like Aave or Synthetix could read from Chainlink price feeds without directly paying each time the feed was updated. How was that possible? Essentially, Chainlink Labs and a coalition of sponsors covered the costs. Chainlink Labs allocated some of its treasury LINK to pay node operators to update feeds, and in some cases, projects or VCs contributed capital to support certain feeds (viewing it as a public good to bootstrap DeFi). This model can be seen as Chainlink subsidizing the supply side (node ops) to encourage adoption on the demand side (dApps) (Sustainable Oracle Economics Are Critical to the Success of Web3) (Sustainable Oracle Economics Are Critical to the Success of Web3). It worked well to establish Chainlink as the go-to oracle (it lowered the barrier for projects to integrate price data), but of course Chainlink couldn’t subsidize everything forever.

Transition to User Fees: As Chainlink usage grew, the focus shifted to having users (or benefactors) pay for the oracle services they use. This aligns incentives and makes the system more self-sufficient. Today, newer Chainlink services are launched with explicit fee models:

  • Chainlink VRF (Verifiable Random Function) – when a dApp requests a random number, they pay a fee in LINK (or in the chain’s gas token, which under the hood often still converts to LINK). VRF has an on-chain billing mechanism.

  • Chainlink Automation (Keepers) – users of automation pay in LINK for upkeep of their contracts (typically via a LINK balance top-up on a contract).

  • Chainlink CCIP – cross-chain messages and token transfers have fees. These fees currently can be paid in the source-chain’s gas token for convenience, but Chainlink then charges an equivalent amount in LINK for the service (often converted behind the scenes). A recent update even introduced a new pricing model to make CCIP cost-efficient (Chainlink Product Update: Q1 2024).

  • Any Future Service – is generally being designed with a fee mechanism in mind, rather than relying on Chainlink’s own pocket.

These user fees go directly to the node operators (and potentially a portion to stakers who are providing security, as that feature comes online). This is analogous to miners or validators in a blockchain getting transaction fees from users. It provides a real revenue stream for nodes. In fact, Chainlink’s Q1 2024 Product Update explicitly mentions work on Payment Abstraction to facilitate payments in various tokens, but ultimately those are “automatically converted into LINK” fees for the node operators (Chainlink Product Update: Q1 2024) (Chainlink Product Update: Q1 2024).

Build & SCALE Programs: Not every project or chain can afford high oracle costs early on, so Chainlink introduced creative programs to share the burden:

  • Under the BUILD program, projects (often new DeFi protocols or Web3 startups) get priority access or enhanced service from Chainlink. In return, they pledge a portion of their project’s token supply or future fees to Chainlink service providers (node operators and stakers) (Chainlink Economics 2.0). For example, a DeFi project might commit 3% of its governance tokens to be paid out to Chainlink oracle providers over time. This way, the project aligns itself with Chainlink’s success – if the project grows, Chainlink node operators benefit from the tokens’ value. From Chainlink’s perspective, BUILD brings in an external source of rewards that’s not LINK inflation and not necessarily immediate user fees, but a stake in the projects that use Chainlink. Over 70+ projects have joined BUILD by late 2023 (Chainlink: The Platform for Building the Verifiable Web).

  • The SCALE program focuses on blockchains and layer-2 networks. A partnering chain (say a Layer-2 network or an alt-L1) will cover some of the operating costs of Chainlink oracles on their chain (Chainlink Economics 2.0). This might mean the chain’s foundation or treasury pays Chainlink nodes to run feeds for a period, or covers the gas costs for oracle reports. The idea is to remove the cost barrier for dApp developers on that chain while ensuring node operators still get paid – but paid by the chain’s sponsors rather than Chainlink. This is a win-win: the chain attracts more developers (because data services are free or cheap initially), and Chainlink offloads the subsidy from itself to the ecosystem that directly benefits.

Both BUILD and SCALE are essentially ways to offset what would otherwise be Chainlink having to spend its own LINK to incentivize nodes. They indicate a shift away from relying solely on Chainlink’s treasury and toward a model where those who need the oracle services are the ones funding them, either with cash, their own tokens, or other value.

Node Operator Rewards Today: With all these pieces, how does a Chainlink node operator earn money in 2025? A few key streams:

  • Direct Usage Fees: Whenever they fulfill a request (price update, random number, CCIP message, etc.) that carries a fee, they get paid. Many price feeds are still migrating to a fee model (some feeds are sponsored by ecosystems via SCALE deals rather than per-call fees), but newer services (VRF, CCIP) have built-in fees. For example, a CCIP node might earn LINK for every cross-chain transfer it routes.

  • BUILD/Partner Incentives: A node that supports a particular project in BUILD might periodically receive that project’s tokens (which could be sold or held). Or a node servicing a particular chain might receive an allotment of LINK or stablecoins from that chain’s foundation for their work (via SCALE).

  • Staking Rewards: If the node operator also stakes LINK in the staking program (and most top nodes do participate), they earn staking rewards. In v0.2, as discussed, node operators even get an extra “delegation” cut from community rewards (Chainlink Staking v0.2 Overview | Chainlink Blog). For example, if a node has staked the max 75k LINK, they get the base 4.5% on that plus the shared 4% delegation portion from the community pool, so possibly ~5%+ effective yield on their stake. This is on top of any fees they earn by running nodes. Staking thus becomes a supplementary incentive for node operators to keep skin in the game and align with the network’s success.

  • MEV Recapture (near future): Chainlink has also explored something called “Smart Value Recapture (SVR)” which aims to capture some of the MEV (Maximal Extractable Value) that arises around oracle reports (for instance, when an oracle report triggers a huge DeFi trade, there may be MEV in that transaction). SVR wasn’t explicitly in the user’s question, but it’s worth noting as a future incentive mechanism where Chainlink nodes could earn a portion of otherwise lost MEV, making the system even more self-sustaining (Chainlink Launches Smart Value Recapture (SVR), CCIP Goes Live ...).

Long-Term Sustainability: The long-run goal is that Chainlink node operation is a profitable business based on service revenue, not token handouts. Chainlink Labs has publicly stated that reliance on subsidies must diminish as the network grows (Sustainable Oracle Economics Are Critical to the Success of Web3). If Chainlink can achieve widespread adoption (through things like CCIP becoming a standard for banks, or thousands of smart contracts using its data), the volume of fees could be massive. Node operators would compete for this business, which ideally leads to a robust, decentralized network of nodes all earning income by providing real utility. In that steady state, the treasury-held LINK can be conserved (or used for other strategic purposes), and potentially token emissions for rewards could drop to near-zero (Chainlink Staking | Chainlink Economics 2.0). We already see this philosophy in the v0.2 staking text: “It is expected that emissions-based rewards will eventually trend toward zero as external sources of staking rewards, such as user fees, grow to sustainably support the network’s…security” (Chainlink Staking | Chainlink Economics 2.0).

From the perspective of LINK holders, this is positive because it means less dilution and that any LINK they hold or stake is backed by real economic activity (fees) rather than just printing more tokens. From the perspective of node operators, this means their revenue scales with network usage – if Chainlink powers the next wave of blockchain applications, node ops share in that success.

The Shift from Subsidies: Chainlink’s documentation uses the example of blockchains using block reward subsidies to bootstrap until fees alone can sustain miners/validators (Sustainable Oracle Economics Are Critical to the Success of Web3) (Sustainable Oracle Economics Are Critical to the Success of Web3). Chainlink’s oracle network is analogous – early on, it “subsidized” via its token reserve, but now it’s at that inflection point where fees are ramping up. A quote from Chainlink’s economics blog puts it clearly: “the oracle subsidization model…will likely continue to play some role in growth…However, it’s not a sustainable model over the long term. As the oracle protocol grows successful, it must move away [from] subsidized rewards as the sole form of reward for service providers.” (Sustainable Oracle Economics Are Critical to the Success of Web3). In other words, we’re transitioning from Phase 1 to Phase 2 of Chainlink’s economy.

To conclude this section: Node operators are increasingly compensated by the users of the network (or the communities that need the data) rather than by Chainlink itself. This shift is crucial. It means the network is maturing and decentralizing its economic model. There’s a virtuous cycle here: as node operators get paid through fees, they’re providing a valuable service that users willingly pay for, which validates Chainlink’s utility. And because the LINK token is the standard for those fees (more on that next), the value flows into LINK’s ecosystem, aligning the interests of node operators, stakers, and holders with the network’s real-world usage.

4. Payment Abstraction & the Universal Gas Token Model

One of the more novel innovations in Chainlink’s pipeline is the Payment Abstraction Layer, which aims to make LINK the universal currency for Chainlink services, even if end-users don’t realize it. Sergey Nazarov often refers to this concept as making LINK a “universal gas token” for the oracle network (Chainlink: The Platform for Building the Verifiable Web).

What is Payment Abstraction? – In simple terms, payment abstraction means decoupling the token used for payment from the service being paid for. Currently, if a dApp wants to use Chainlink, in many cases they need to acquire LINK tokens to pay node operators (for example, topping up LINK in a VRF or Automation contract). This can be a hurdle for some users, especially new Web3 entrants or traditional businesses – they might not want to hold or manage yet another crypto token just to use a service. The payment abstraction solution that Chainlink is building will allow users to pay in any asset or currency they prefer, while still ultimately compensating Chainlink nodes in LINK behind the scenes (Chainlink: The Platform for Building the Verifiable Web).

Sergey explained it like this: “Users should be able to pay with a credit card, a bank account, a native blockchain token, a stablecoin, or their own protocol token, while the payment abstraction layer turns it into LINK.” (Chainlink: The Platform for Building the Verifiable Web). In other words, “Pay in anything, receive in LINK” (Chainlink: The Platform for Building the Verifiable Web).

Here’s how it works under the hood:

  • A user (or smart contract) makes a request to a Chainlink service (say, an oracle data request or a CCIP message) and attaches a payment in some asset – it could be ETH, could be DAI (a stablecoin), or anything that the system supports.

  • Chainlink’s Payment Abstraction system will use on-chain price oracles (naturally, Chainlink Price Feeds themselves) to calculate how much that payment is worth in terms of LINK or USD value (Chainlink: The Platform for Building the Verifiable Web).

  • Then, through an automated swap (via a decentralized exchange or other liquidity mechanism), it will convert that payment into LINK tokens at the market rate (Chainlink Product Update: Q1 2024).

  • The Chainlink nodes fulfilling the request receive LINK (or a claim on LINK that they can withdraw), just as they normally would. The user effectively paid in their asset, but the node was paid in LINK – the conversion was handled by the network’s infrastructure.

Latest Developments: As of Q1 2024, Chainlink’s team was actively working on this system. The official Q1 2024 update states: “work is underway on a payment abstraction solution where fee payments made in alternative assets are automatically converted into LINK.” (Chainlink Product Update: Q1 2024) (Chainlink Product Update: Q1 2024). Additionally, Chainlink had a Code4rena audit contest in Dec 2024 for Payment Abstraction contracts, indicating the contracts were written and being tested for security. This suggests the feature is getting closer to deployment.

Why Payment Abstraction Matters:

  • Ease of Use: Developers and users can interact with Chainlink services using whatever asset is most convenient. For example, if you are a DeFi app on Polygon and you primarily have MATIC tokens, you could pay for Chainlink Data Feeds with MATIC directly. If you’re a traditional company that only has fiat, maybe there will be an off-chain service or gateway that takes your credit card and translates that into a blockchain stablecoin payment that then gets converted. This removes a step (acquiring LINK) for users, thus reducing friction.

  • LINK as Universal Gas: Even though users might not handle LINK, the system itself will be constantly swapping other assets to LINK to pay node operators. This effectively makes LINK the universal “gas” or medium of exchange within the Chainlink network of services. Every time someone pays in something else, there’s a market buy of LINK happening in the background. This creates organic demand for LINK driven by service usage. Much like how on Ethereum every action by any user requires ETH for gas (creating continuous buy pressure for ETH to use the network), in Chainlink’s case every usage will require LINK (directly or indirectly). Sergey emphasized that few projects can build this kind of system because it requires reliable pricing of all those assets – a capability Chainlink, as an oracle provider, uniquely has (Chainlink: The Platform for Building the Verifiable Web).

  • Chainlink as a Service Platform: Payment abstraction is part of Chainlink’s evolution into a full-fledged platform (sometimes called the “Chainlink metalayer”). Chainlink isn’t just one service – it’s a collection (Data Feeds, VRF, CCIP, etc.) – and the payment layer will unify how all those services are paid for. It may even become its own standalone offering: “the payment abstraction layer may at some point in the future become its own separate Chainlink service, where data oracles are used to assign value to whatever tokens users want to pay with.” (Chainlink: The Platform for Building the Verifiable Web). This hints at a potentially very powerful piece of middleware: a decentralized pricing and swapping service. It’s like a built-in DEX aggregator that is purpose-built for paying for oracle services.

  • Universal Gas Token: By turning LINK into the common denominator for all service payments, Chainlink positions LINK as analogous to how ETH or gas tokens power blockchains. In fact, in multichain contexts, LINK could become a sort of interoperable “gas” for off-chain computation and data. The Chainlink blog phrased it as the payment layer helping to “create a universal gas token and payments layer” for Chainlink’s platform (Chainlink: The Platform for Building the Verifiable Web).

Fee Structures & Automated Swaps: An important aspect is how fees will be structured. If you pay in a non-LINK asset, there might be a slight premium or conversion fee to cover slippage and DEX fees. For example, if paying in a volatile token, Chainlink might require a bit more to account for the risk of price movement during swap. Or it could use a oracle-driven TWAP price. These details will determine how seamless and cost-efficient the system is. Given Chainlink’s focus on reducing friction, they will strive to make it feel as close as paying with LINK natively as possible.

One likely scenario: Chainlink could integrate with DEXs on each chain where it operates. Suppose on Ethereum someone pays 100 USDC for a service that costs 2 LINK. A Chainlink contract could route that 100 USDC to swap on, say, Uniswap for 2 LINK, then distribute that LINK to the node operators. This could happen in one transaction or a series of transactions, but from the user perspective, they just spent USDC. The success of this model will depend on having liquid markets for LINK against many tokens, which by and large exists (LINK is a top crypto with deep liquidity on many chains).

Sergey’s Video Insights: Sergey Nazarov’s YouTube breakdown (titled “What is Payment Abstraction?”) further reiterates the points above. He notes that having this flexibility in payments is crucial for Chainlink’s adoption, because different users have different preferences (enterprises might prefer fiat or stablecoins, crypto-native projects might have their own token). By accommodating all, Chainlink removes an adoption hurdle. Sergey also mentions that Chainlink, being an oracle network, is ironically the one best positioned to solve this multi-asset payment problem because it can leverage its own data feeds to know the exchange rates and its secure network to execute the swaps without relying on a third party. Essentially, Chainlink will eat its own dog food: using oracle data to run its payment converter.

To quote the Chainlink blog SmartCon keynote recap: “The payment abstraction layer is important because it reduces the friction of users paying to get access to decentralized oracle networks... users should be able to pay with ... [various methods] ... while the payment abstraction layer turns it into LINK.” (Chainlink: The Platform for Building the Verifiable Web). Also, “not many projects in our industry can build [this] because you need to know the value of the token you’re getting paid [in]... that requires price oracles, which Chainlink is the industry leader in.” (Chainlink: The Platform for Building the Verifiable Web). These statements underline that Chainlink’s own tech gives it a moat in creating a universal payment layer.

Impact on LINK: From a tokenomics perspective, Payment Abstraction means any usage of Chainlink would lead to buy pressure on LINK, even if LINK isn’t the upfront payment. It effectively broadens the range of circumstances that result in LINK demand:

  • A DeFi protocol that only has ETH revenue can still indirectly pump LINK demand by using Chainlink (since their ETH will be converted to LINK for payment).

  • A game that generates an ERC-20 token can pay Chainlink with that token, causing LINK to be bought.

  • Even potentially a Web2 integration where a company pays in dollars – that somewhere gets converted to LINK to pay the nodes (perhaps via a stablecoin intermediary).

This model could lead to many micro-conversions happening all the time: LINK acting as the settlement token for oracle work, even if it’s invisible to some users. Over a large scale, that could tether LINK’s value to the aggregate demand for Chainlink services quite directly.

In conclusion, Payment Abstraction elevates LINK’s role from just “the token you pay to use Chainlink” (which presupposes every user has LINK) to “the network’s native token that underlies all payments.” It’s akin to how you might pay your cloud provider in your local currency but the cloud provider internally might settle everything in USD. Here, LINK is the internal settlement token for Chainlink’s decentralized cloud of oracle services. This development is highly anticipated in 2025 and is part of Chainlink’s effort to streamline the developer experience (so that using a Chainlink service is as easy as calling a web API with a credit card on file). Once live, it should accelerate adoption and, at the same time, drive more value capture through LINK as usage scales.

Bringing it all together, how do Chainlink’s tokenomics, staking, fees, and payment systems affect LINK’s value accrual? Essentially, Chainlink is engineering its economic model so that LINK captures the growth of the network’s usage.

Demand-Side Pressures: The various mechanisms discussed create multiple sources of demand for LINK:

  • Staking Demand: LINK is required to stake and participate in network security. As staking expands (more services, higher caps), a larger portion of LINK may be sought by those who want to earn staking rewards. This locks up tokens (illiquid for the duration of stake) and also creates a base demand (people buying LINK to stake it). For example, if an institution wants to run a Chainlink node for CCIP, they might need to buy a significant amount of LINK to post as collateral. Currently ~45M LINK is staked in v0.2; future expansions could push that higher, especially if, say, CCIP requires nodes to each stake millions of LINK to secure high-value transfers (speculative scenario).

  • Fee Demand (Direct): Any project or user that needs to pay for Chainlink services in LINK must acquire LINK. In the present state, that includes many VRF users, some Data Feed sponsors, etc. With Payment Abstraction, even if they pay in other assets, the protocol itself becomes a buyer of LINK on their behalf (Chainlink Product Update: Q1 2024). So every usage of Chainlink is effectively a buy for LINK from some market. As the Chainlink network usage grows, this could mean a continuous flow of buy orders: the more random numbers, price updates, cross-chain messages, and function calls executed, the more LINK is being bought (and subsequently paid out to node operators).

  • Holding Demand for Utility/Access: Some participants might hold LINK for reasons like governance or access (though Chainlink doesn’t have on-chain governance yet) or to qualify for programs (e.g., some early access for staking or benefits might favor long-term holders). Also, Build program projects often hold LINK as part of their partnership, and some treasury strategies involve holding LINK to ensure oracle services (like a project might keep a LINK reserve to pay for oracles over time). These use cases are smaller but contribute to demand at the margins.

  • Speculative/Investment Demand: Beyond utility, many crypto investors hold LINK in anticipation that all the above factors will increase its value. While this isn’t a network-driven demand per se, it’s part of the market dynamics. As Chainlink proves its economics, more investors may be drawn to LINK for its cash-flow potential (if staking yields from real fees become sizable, LINK starts to resemble a productive asset).

Supply-Side Factors: On the other side, how supply enters the market influences price:

  • Fixed Max Supply: With a hard cap of 1B and no inflation, LINK has a predictable, limited supply. This scarcity principle means that if demand grows and supply stays relatively constrained, upward price pressure ensues. Many major crypto networks with heavy usage (Bitcoin, Ethereum post-merge effectively, BNB, etc.) have seen price appreciation partly due to limited or reducing net supply combined with growing demand.

  • Treasury Sales / Unlocks: One must acknowledge that Chainlink still has ~360M tokens that could come into circulation. If Chainlink Labs or the Foundation were to sell a lot of tokens quickly, it could dampen price. However, their actions in the past have been to gradually distribute tokens in sync with network needs. For instance, in 2022 a noticeable increase in circulating supply occurred (roughly tens of millions) which correlated with the launch of staking v0.1 and team funding – the market absorbed it over time. The Chainlink team has an incentive to not flood the market and undermine the token’s value (since LINK value is crucial for node incentives and community trust). So far, supply increases have been moderate (a few percent per year). If user adoption outruns that, demand could outstrip any new supply easily.

  • Emissions vs Fees: A critical inflection will be when LINK rewards paid out are coming from fees users paid (i.e., circulating among participants) rather than new tokens from reserves. In v0.2 staking’s launch, the rewards are still coming from Chainlink’s allocation (essentially “emitting” new circulating tokens as rewards). But as noted, these emissions are set to “trend toward zero” as fee rewards take over (Chainlink Staking | Chainlink Economics 2.0). When that transition completes, it means no net new LINK entering circulation for rewards – instead, LINK is just moving from users (who buy it to pay) to node operators/stakers (who earn it). That is a circular economy rather than inflationary. In such a state, the only significant new supply introductions might be for exceptional events or partnerships, whereas otherwise the token supply could be relatively stable. If the network generates, say, $100M of fees in a year, that $100M worth of LINK might go from dApp budgets to node operators, who may sell some to cover costs – but that’s organic turnover, not inflation.

Value Capture: Chainlink’s model is explicitly about value capture for the LINK token. The Economics 2.0 vision describes a “virtuous cycle that increases value capture of the Chainlink Network, fueling adoption of decentralized services” (Chainlink Economics 2.0). Value capture means as the network provides more real value (data, trust-minimized services), a portion of that value is reflected in the token. Concretely:

  • If a DeFi protocol is willing to pay $X for reliable oracles, that $X of value gets channeled into LINK (via fees).

  • If an enterprise is willing to pay $Y for cross-chain interoperability, that eventually results in $Y of LINK being bought/used.

  • If a blockchain is willing to invest $Z to have Chainlink support its ecosystem, that might involve buying Z worth of LINK or allocating it to node operators.

Over time, as more money flows into the Chainlink network’s usage, more value flows into LINK. Meanwhile, the token’s float is shrinking relatively (due to staking lockups and lack of new minting). Already, we saw a significant lockup of LINK in staking (45M) and additional millions locked in node security deposits, etc. Payment abstraction could also introduce mechanisms like holding some buffer of LINK in contracts to facilitate swaps, etc., further locking some liquidity (for example, the Payment Router might hold a little LINK for efficiency).

It’s also important to note that Chainlink’s use cases are expanding (data, randomness, automation, cross-chain, off-chain compute, etc.), which opens up potentially massive markets (like global finance, gaming, insurance, and more). If even a fraction of those markets’ activity flows through Chainlink, the demand for LINK could be orders of magnitude higher than today’s primarily-DeFi-driven demand. Sergey Nazarov in his 2025 outlook highlighted how Chainlink’s tech (like CCIP) is being eyed by institutions and could secure “hundreds of trillions of dollars in value” in the long run (Chainlink: The Platform for Building the Verifiable Web) (Chainlink: The Platform for Building the Verifiable Web). While token price is a complex outcome of many factors, such statements indicate the ambition: if Chainlink indeed secures even a small percentage of global value transfer or trade, the usage of LINK would skyrocket.

Non-inflationary Rewards Impact: The shift to non-inflationary rewards is somewhat rare in the crypto industry. Many networks continue with block subsidies indefinitely. Chainlink choosing to not introduce new inflation means LINK is deflationary relative to the network’s growth (assuming the network grows). That could make LINK similar to a stock with buybacks, metaphorically – where instead of diluting shareholders, the company (network) generates revenue and even reduces float (through lockups). While LINK won’t be literally burned by the protocol (no routine burn like Ethereum’s fee burn at this time), effectively more value is being funneled to holders/stakers without increasing supply.

We can foresee a scenario: Suppose by 2026, Chainlink Staking v1.0 is live and it pays out say 7% yield entirely funded by fees from a booming CCIP and data market. If you hold LINK, you can stake and earn a portion of all the activity happening on Chainlink, and your stake isn’t being diluted by new token mints. This would make LINK quite attractive from a fundamental standpoint, potentially encouraging long-term holding and further staking (reducing circulating supply).

Price Impact: The net effect of all the above on LINK’s price is ultimately determined by market perception and timing of cash flows. In the short term, events like token releases or broader crypto market trends can cause volatility. For example, if Chainlink releases 50M tokens over a year to fund operations, and network usage has not yet grown enough, that could temporarily put sell pressure on LINK’s price. On the other hand, during periods of high demand (say a VRF integration across hundreds of NFT projects requiring LINK, or a major CCIP usage spike because a big stablecoin adopts it), you could see increased buy pressure.

Another factor is node operator selling behavior: Node operators incur costs (like server costs, gas costs for posting oracle reports) and thus typically sell some of the LINK they earn to cover expenses. As Chainlink transitions to being fee-supported, node ops will receive more LINK from users – some of which will be sold for fiat or other assets (like to pay for hosting). This creates some sell pressure, but it’s healthy because it’s tied to real usage (kind of like miners selling mined coins). The key is that this selling is coupled to usage; if usage is high, yes more LINK is distributed (bought then paid to nodes), and nodes selling just balances out some of the buy pressure from users – ideally still leaving a net positive demand, especially if some node ops and stakers also hold or restake a portion.

Summing Up: Chainlink’s model is aiming for a balanced equilibrium where:

  • Users drive demand for LINK by needing it for services (directly or indirectly).

  • Service providers (nodes/stakers) supply those services and receive LINK, some of which they may sell or stake, but as long as the network growth is strong, the demand can outpace the sell-side.

  • No excessive new supply is coming in to undermine the value – the supply is fixed and mostly in circulation, and what remains is largely earmarked for making the network more valuable (which in theory should increase demand correspondingly).

In the long term, if Chainlink becomes as ubiquitous as its team hopes – securing the “final stage of blockchain adoption” by connecting all webs of value (public blockchains, enterprise systems, banks, etc.) – then LINK could see significant value accrual. Every bank transfer that uses CCIP, every game that uses VRF, every insurance contract that uses an external data feed would be indirectly creating LINK buy pressure. At that point, LINK’s price could be influenced more by macro adoption curves (number of oracle calls, volume of cross-chain value) than by crypto market cycles alone.

It’s also worth noting one more angle: LINK as a reserve asset. Some DeFi platforms have started accepting LINK as collateral (for loans, stablecoins, etc.). As LINK demonstrates predictable cash flows or usage, it could gain favor as a kind of yield-bearing asset. For instance, a DeFi lending market might be more willing to accept LINK as collateral if it sees LINK stakers earning steady fees. This again broadens demand (from the DeFi investor crowd).

In conclusion, Chainlink’s updated tokenomics and mechanisms create a reinforcing loop for LINK’s value:

  • Limited supply + more staking = fewer tokens liquid.

  • More network usage + payment abstraction = more tokens needed (or purchased) to pay for services (Chainlink Product Update: Q1 2024).

  • Transition to fee-based rewards = LINK holders benefit directly from network revenue without dilution (Chainlink Staking | Chainlink Economics 2.0).

  • Reduced reliance on inflation = more sustainable and investor-friendly economy.

The expectation is that as Chainlink’s tech becomes indispensable to blockchain applications (and even Web2 integrations), LINK will capture a portion of the economic value flowing through the network, driving its price and value upward over time. This is the crux of “value accrual” – the design ensures LINK isn’t just a static token, but the financial core of the Chainlink ecosystem, accruing fees and utility with every request fulfilled and every new use case added.

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