Chainlink establishes strategic LINK reserve. | Credit: Viviane Moos/CORBIS/Corbis via Getty Images.
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Key Takeaways
The Chainlink Reserve currently contains $1.2 million worth of LINK.
LINK is trading up 12.4% in the past 24 hours at $19.36 with a $13.11 billion market cap.
Strategic Bitcoin and altcoin reserves are a new and increasingly popular concept amongst private firms.
Chainlink has boldly launched an on-chain LINK reserve that will be funded through on- and off-chain revenue streams to further secure the token’s value.
Chainlink has created a strategic on-chain reserve for LINK tokens.
As announced, the Chainlink Reserve is a strategic fund designed to support the network’s long-term growth and sustainability by accumulating LINK tokens.
It’ll gather these tokens from off-chain revenues from large enterprises that have adopted Chainlink and on-chain service usage revenues.
The blog notes that demand for Chainlink has already yielded hundreds of millions of dollars in revenues, signaling a bright future for the reserve.
Humble beginning for the LINK Reserve. | Source: Chainlink Reserve.
So far, the reserve has stocked up 65,539 LINK, currently worth $1.2 million. Chainlink notes that it doesn’t expect “any withdrawals from the Reserve for multiple years,” and will continue to grow “over time.”
Powering this process is Payment Abstraction, which processes payments of various assets like stablecoins, gas, and utility tokens and converts them into LINK through its services or decentralized exchanges (DEXs).
Bitcoin (BTC) has become a strategic reserve asset for companies and governments all around the world.
In the U.S., Michael Saylo’s’ Strategy (formerly MicroStrategy) dominates as the world’s leading Bitcoin behemoth. In Japan, Metaplanet and others pursue BTC just as aggressively.
El Salvador turned to Bitcoin earlier than most nations, Bhutan is actively mining BTC to increase its stash, and U.S. President Donald Trump officially established a Strategic Bitcoin reserve and Digital Asset Stockpile.
Evidently, it was only a matter of time before private firms and blockchain networks began considering the concept as a viable long-term investment.
Chainlink’s announcement arrives as institutional adoption reaches a fever pitch.
As co-founder Sergey Nazarov points out, the reserve is a “clear answer to how off-chain revenue and large-scale institutional adoption of the Chainlink standard will be connected back to the growth, security and sustainability for those standards.”
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
