ChainLink Token (Ethereum)

LINK

LINK is the governance and utility token of the Chainlink protocol.

Risk Rating
Best
$18.14
5.12%
Summary
What we like
LINK has intrinsic value as the native utility token used to pay node operators for providing oracle services like retrieving and providing price feeds.
What we like less
The team still has significant control of the token's supply and the node operator rewards are effectively liquid as there are no restrictions on token distribution.
What it means for you
Allows you to gain exposure to the largest decentralized oracle network with higher demand for price feeds directly benefiting LINK holders.
Information
Blockchain
  • Ethereum
Key Metrics
  • Market Cap: $10.6B
  • Fully Diluted Valluation: $18.1B
  • FDV / MC: 1.7
  • Ranking inside Exponential (excluding stables): #7
  • Circulating Supply: 587,099,971
  • Total Supply: 1,000,000,000
  • Total Supply: 1,000,000,000
  • Volume (24H): $981.3M
  • ATH: $52.70 (05/10/2021)
  • ATL: $0.15 (11/29/2017)
Risk Assessment
Best
Asset Strength

LINK is a mid-cap asset that represents the blockchain`s native currency or monetary fee used to execute transactions on the network.

Asset Tokenomics

LINK has a fixed supply. LINK is the governance and utility token of the Chainlink network of oracles. Participants running oracle nodes need to stake a minimum amount of LINK per oracle.

Asset Volatility

LINK is highly correlated to the overall market.

Dependencies

ChainLink Token (Ethereum) has no dependencies.

Things to know about LINK

What is LINK used for?

LINK is the utility token for the Chainlink protocol. It is mainly used to pay for Chainlink node operators for providing data and information from off-chain sources to on-chain smart contracts via decentralized oracles. The second use case is for node operators to stake LINK as collateral to provide oracle services. The primary goal of staking is to increase the economic security and user assurances of Chainlink oracle services. If a node operator fails to meet its on-chain obligations, then a portion of staked LINK can be slashed and redistributed. This provides a strong incentive for nodes to provide accurate data as well as deliver them in a timely manner. A secondary goal is allowing the community to directly participate by staking to support the performance of oracles. The third goal of staking is to enhance the distribution of rewards to stakers with protocol fees expected to become a larger portion over time (vs. inflationary token emissions). Lastly, node operators who stake more tokens can access higher-value roles such as Decentralized Oracle Networks (DONs).

LINK tokenomics

The total supply of LINK is capped at 1B tokens. The token supply is allocated between token sales investors (35%), node operators as premined rewards and airdrops (35%), and the founders and parent company (30%). The node operator rewards are effectively fully liquidt as they are not locked within any contract and can be distributed at will.

How does LINK accrue value?

Greater demand for Chainlink's oracle services will lead to token value accrual as LINK is required to pay node operators for their services. This leads to greater demand for node operators to buy and stake more LINK to offer more price feeds as well as participate in enhanced roles like DONs.