Crypto treasury projects have been gaining momentum since the beginning of the year. Chainlink is clearly looking to get in on the action with a fund dedicated to its cryptocurrency, LINK.
Chainlink announces the creation of a strategic reserve of LINK tokens
Not a day goes by without new announcements increasing the number of crypto treasuries. This trend, which initially focused on Bitcoin, has recently opened up to the altcoin market.
Clearly, the Chainlink project development team has taken this trend into account. It has just announced on its official X account its intention to develop “a strategic on-chain reserve of LINK tokens.”
In practice, this reserve is intended to support the long-term growth of its network. To achieve this, the funds for this accumulation of LINK tokens will come from “off-chain revenue from large enterprises adopting the Chainlink standard and from the use of on-chain services.”
With growing demand from some of the world’s largest banking institutions and capital markets, this form of off-chain payment for the Chainlink standard is expected to grow in the future as the ecosystem expands.
Chainlink
A strategic reserve with payment abstraction
According to the official press release, this strategic reserve will be based on the principle of payment abstraction developed earlier this year. This is an infrastructure that allows users of its services to pay with their preferred payment method (gas, stablecoins, etc.). These are then automatically converted into LINK tokens. At present, Chainlink’s strategic reserve has already accumulated $1 million in LINK tokens as part of its initial launch phase. This amount is likely to increase over time, although it must be acknowledged that the current revenues of this protocol — estimated at less than $5,000 per day on average — do not give rise to hopes of exponential growth.
Chainlink has announced its intention to hold onto the LINK tokens accumulated “for several years,” with the promise that this strategic reserve will grow at the same rate as the exceptional adoption of its oracle services in the coming years.
