Blockchain oracle service Chainlink (LINK) has announced an upcoming update to its staking mechanism.
Through social media platform X, the oracle Announced Chainlink Stake v0.2, which is currently being prepared with a new pool of 45 million LINK tokens.
The update focuses on four main components, according to Chainlink: a new unbinding mechanism, stake reduction, a dynamic reward system, and a new modular architecture to ensure a smoother future update.
Unbinding is the period immediately after unbinding, where coins are typically locked on the blockchain for a certain period of time before being released to users.
Staking is when the network takes or “shorts” a bettor’s coins if they do not follow certain rules or behave maliciously.
The migration to version 0.2 is released in three phases that prioritize version 01 participants.
Chainlink staking was launched on the Ethereum mainnet in December last year with the goal of improving the security of the network and helping it serve a broader range of applications.
Says the Chainlink blog,
“Chainlink Staking is a key cryptoeconomic security mechanism in which participants stake LINK tokens in smart contracts to support certain performance guarantees around oracle services.
The addition of staking allows Chainlink’s decentralized oracle networks (DON) to scale to serve a broader range of higher-value applications and use cases in the traditional Web3 and Web2 industries.
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source: dailyhodl.com
