Alternative to Ethereum staking finally emerges, but there are some details you need to know
Chainlink Staking v0.1 will 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.
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.
1/ With Chainlink Staking v0.1 launching on Ethereum mainnet on December 6th, we’d like to provide an update on our iterative approach to building future versions of Staking beyond this initial release and how that will affect important attributes like the lock-up period.
— Chainlink (@chainlink) December 1, 2022
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.
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.