LINK

LINK is the Native token of Chainlink. Founded in 2017, Chainlink is a blockchain abstraction layer that enables universally connected smart contracts. Through a decentralized oracle network, Chainlink allows blockchains to securely interact with external data feeds, events and payment methods, providing the critical off-chain information needed by complex smart contracts to become the dominant form of digital agreement.

Staking in Chainlink involves nodes, or network members, depositing liquidity in the form of LINK tokens. The staked funds serve as an explicit incentive and are liable to forfeiture if a node fails to deliver services or misbehaves. A comparable implicit incentive exists in the Chainlink network, referred to as future fee opportunity (FFO). Users pay fees to nodes that have a good track record or reputation. Any misbehaviour by these nodes jeopardizes potential revenue earned through network participation. This process is known as slashing in the blockchain world.

To summarize, in the growing Chainlink network, there are two key economic incentives for correct oracle node behaviour:

These two incentives are mutually beneficial. Oracle nodes can simultaneously participate in the Chainlink staking protocol, generating a steady stream of staking from users while also benefiting from their good behaviour collectively.

Source: Coinbase