Chainlink has launched a new on-chain reserve, called Chainlink Reserve, designed to trage demand for its original link token, the company announced on Thursday.
The reserve accumulates link by means of revenue from both fees paid for by large institutions of Chainlink’s services and the use of the chain’s use of decentralized applications, the company said in a press release, adding that the reserve is designed to support the growth and sustainability of the Chainlink network.
Chainlink uses what it calls payment abstraction to allow users to pay in tokens like ETH or USDC. Instead of requiring all payments to be made in link.
These payments are then automatically converted to link through Chainlink’s services and decentralized exchanges. The new reserve is completely built by the converted payments and is intended to finance long -term growth and help secure the network, according to the press release shared with Coindesk.
The reserve already has over 1 million dollars link. Chainlink said it does not expect any withdrawal from the reserve for “several years” and the balance is expected to grow when more corporate income is corrected on the chain.
“The launch of the chainlink reserve marks a central development in chainlink that creates a strategic link reserve financed using off-chain revenue, as well as from the use of chain service,” chainlink co-founder Sergey Nazarov said in a statement. “The demand for the Chainlink standard has already created hundreds of millions of dollars in revenue, significantly from large companies.”
Large companies that have used chainlink’s infrastructure include MasterCard that collaborated with the company to allow card holders to buy crypto on-chain, and JPMorgan, whose Kinexy’s Digital Payments platform is linked to Ondo Chain using Chainlink’s technology.
Chainlink has also released a dashboard to track the reserve’s balance on reserve.chain.link along with the reserve contract at Etherscan.
