Chainlink Announces LINK Reserve Fund Worth 1 Million USD, Funded by Enterprise Revenue and Onchain Services.
Chainlink has launched a strategic reserve fund to support long-term growth and sustainability of the decentralized oracle network by accumulating tokens from both offchain enterprise revenue and onchain service revenue. This initiative has purchased over 1 million USD worth of LINK tokens during the startup phase and is expected to gradually increase as more revenue is converted in the coming months.
The LINK price reacted positively to the announcement, increasing by approximately 9.4% to $17.96 according to data from The Block. This move demonstrates market confidence in the sustainable business model Chainlink is building.
Chainlink plays a crucial role as a bridge between blockchains and real-world data, other decentralized networks, and enterprise systems. The platform operates trading volume worth tens of billions of dollars across multiple sectors including DeFi, banking, Real-World Assets, and cross-chain applications.
Revenue Conversion Model to LINK
Adopted by major organizations like Swift, Euroclear, Mastercard, UBS, and Aave, Chainlink has generated hundreds of millions of dollars in revenue, primarily from offchain enterprise payments to access the platform. These resources will continue to drive the reserve fund in the future.
The reserve fund uses payment abstraction to convert onchain and offchain revenue into LINK. Users can pay for Chainlink services in their preferred format like stablecoins, which are then programmatically exchanged for LINK through decentralized exchanges.
Co-founder Sergey Nazarov emphasized the importance of the initiative: "The launch of Chainlink Reserve marks a significant development for Chainlink, establishing a strategic LINK reserve fund funded by offchain revenue and onchain service usage." He stated that the fund provides a clear answer to how offchain revenue and Chainlink standard adoption at an organizational scale will be reconnected to growth, security, and sustainability.
Chainlink commits to not withdrawing tokens from the reserve fund in the coming years, allowing the fund to grow steadily over time. This long-term strategy demonstrates confidence in the oracle network's sustainable growth potential.
As demand for Chainlink services continues to increase, the project anticipates that higher adoption levels will help the reserve fund expand even more robustly. This model creates a positive loop where the development of the Chainlink ecosystem directly contributes to strengthening the LINK reserve.
