According to the latest Flipside Crypto report Chainlink spends one million LINKs a month to reward node operators, and beats Ethereum by a wide margin.
Chainlink’s aggressive expansion
The researchers found that 500,000 Chainlink (LINK) are sent to node operators twice a month.
LINK tokens flow within the crypto ecosystem. Source: Flipside Crypto
At current prices, this support is nearly $ 5 million a month or nearly $ 60 million a year. At the same time, the Ethereum Foundation is expected to spend $ 30 million this year. The market capitalization of Ether (ETH) is about 15 times that of Chainlink.
This aggressive spending has allowed the company to reach key milestones such as integration with the Blockchain Service Network (XTZ) in China and Tezos and the introduction of verifiable randomness in the chain.. This has also allowed LINK to trade near its all-time high. That was recently said by a co-founder of Framework Venture, Michael Anderson The LINK price is expected to exceed $ 25 in the near future.
The $ 16 billion node incentive fund
Chainlink ICO raised USD 32 million in September 2017. The total offering is 1 billion tokens, with 35% being distributed during the token sale. The company reserved another 30% for continuous development and the remaining 35% for the incentive for node operators.
Initial distribution of LINK tokens. Source: ICODrops.
The “Node Operator” wallet with 350 million LINK is retained. The expenses come from a wallet that originally contained 50 million tokens. You have over 31 million LINK left. There is another similar wallet that also started with 50 million LINK and had regular outs. Around 37 million LINKs remain in this wallet. Both are identified by Glassnode as team wallets. The last one had regular expenses of 700,000 LINK in 2019.
If these payments really go to node operators, it’s not clear why they don’t come from a wallet with 350 million LINKs. However, all wallet assignments are hypothetical since this information does not come directly from Chainlink.
Apparently, No segmentation between corporate and team wallets. Assuming that the two wallets belong to the Chainlink Foundation, So far, at least 31,509,569 LINKs have been issued for chainlink development. At the current price, this corresponds to around USD 150 million.
Chainlink declined our request for comment.
Speculation and stronger decentralization
The report also notes that Although most of the token supply is still used for speculation, the project has a very active community and is becoming increasingly decentralized:
“Chainlink” has a very committed community. The fact that more and more users are collecting LINK indicates a very healthy ecosystem that is becoming increasingly decentralized and active. Our benchmarks, which compare the data from Chainlink with that of over 40 other blockchains, we monitor the rank of Chainlink significantly above others, measured by the average number of unique addresses that are active in the network every day. “
Chainlink’s expansive strategy has paid off. It has had tangible results, from key integrations to high market capitalization. Perhaps the most impressive achievement is that Chainlink has become synonymous with crypto.
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