Buy the rumor, sell the news? Chainlink (LINK) price drops after staking launch
Chainlink has a busy start to December when it comes to development launches. The Chainlink (LINK) staking program opened up for early access on Dec. 6 and will expand access on Dec. 8.
According to Chainlink, staking will further secure the project’s node ecosystem and alerting mechanism:
Historically, mainnet launches and staking incentives stir up a flurry of blockchain activity and data from on-chain analytics firm Arkham shows a sharp uptick in activity.
Chainlink Staking went live 19 hours ago. $LINK marines have flooded the contract with their deposits exceeding 11M Chainlink tokens.Meaning, over $77.7M of $LINK has been deposited in the contract currently.The first, and largest, deposit so far was 500k LINK or $3.64M. pic.twitter.com/aB6elCM5PE
While node providers received access on Oct. 3 with uncapped terms, Chainlink’s early access staking capped the total per person staking at 7,000 LINK. Despite this cap, the staking program has garnered traction, far surpassing 11 million staked LINK on Dec. 6.
The next phase in staking takes place on Dec. 8 which reduces the minimum staking amount from 1 to 0.1 LINK and the overall staking program is currently capped at 25 million LINK.
Even with solid traction from the early public staking launch, LINK price has corrected, losing 4% since Dec. 6.
In order to encourage early adoption, Chainlink set a minimum amount of emissions for the program. The expected emissions for those in the staking program are a minimum of 5% APY for the community and 7% APY for node operators. Community stakers are also expected to lose a 0.25% fee to node operators. Due to these terms, there is a chance LINK becomes hyper-inflationary without enough fees to back up the rewards.
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