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Chainlink Staking Launching on December 6, Here's What You Need to Know

Thu, 12/01/2022 - 08:18
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Arman Shirinyan
Alternative to Ethereum staking finally emerges, but there are some details you need to know
Chainlink Staking Launching on December 6, Here's What You Need to Know
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Chainlink Staking v0.1 goes live on Ethereum mainnet on Dec. 6, which is why it is important to dig through all of the existing details about it to find out if it will be able to compete with Ethereum's solution and if sensitive details like its lock-up period are fully transparent.

Lock-up

The lock-up period is the cornerstone of any staking operation, as it remains the main mechanism for easing up selling pressure on the market and forming a stable collateral for networks to work with. Recently, Ethereum faced a massive backlash after developers postponed the unlocking of users' funds, practically removing their ability to withdraw their assets from contracts for an unknown period of time.

In the case of Chainlink, the original 12-24 month lock-up period was based on a "conservative release cycle." However, after contacting community members and node operators directly, Chainlink management decided to change the lock-up period to 9-12 months.

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After releasing the next version of staking, users will be able to unlock or migrate their staked LINK tokens and rewards. By unlocking their funds, investors will have no issues taking profits right away or moving funds to the new version of staking on the network, entering another lock-up period.

The Chainlink staking adds performance guarantees around oracle services with the help of LINK tokens committed by users. On Dec. 6, users will be able to use Chainlink beta with the support of the ETH/USD Data Feed on Ether's maininet.

Stakers will earn rewards for helping to secure the data feed by alerting users about any performance issues that may occur through the entire period of beta testing.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.