TL; DR
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Chainlink updated its staking program, resulting in a purchase of +$620 million in $LINK and +12% in token price.
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Chainlink wants investors to hold $LINK tokens because the more tokens held, the more value remains in the ecosystem.
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So they have a larger stake pool, which means more tokens can be locked.
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That means there will be less to sell… which means the total circulating supply will shrink… which will increase the scarcity of tokens and their price (or at least that’s the idea!).
Full story
Ready for a bunch of crypto terms? Nothing goes here…
Chainlink updated its staking program, resulting in a purchase of +$620 million in $LINK and +12% in token price.
Great, so why is this strike program getting so much attention?
Chainlink is the largest blockchain data oracle project, meaning it takes real-world data and puts it on the blockchain (e.g. weather patterns).
You can use that data as follows:
You want to monitor Twitter trends for mentions of Ethereum → so program your Chainlink to watch it for you → tell it to buy ETH when it starts to become popular → have it automatically sell it a few days later if the price of ETH goes higher is then you paid for it → you take home profit.
Nice. But what does this have to do with striking?
So Chainlink uses its own token ($LINK) to buy and sell real-world data.
In the past, most people who sold real-world data in exchange for $LINK tended to immediately sell it for cash.
Because $LINK has no clear incentive to hold it long-term.
That’s not great for token prizes! You want investors to hold these tokens. The more tokens are held, the more value remains in the ecosystem.
SO!
Chainlink has a larger stake pool, meaning more of its tokens can be locked.
That means less will be sold… which means the total circulating supply will shrink… which will increase the scarcity of tokens and their price.
…at least that’s the idea.
