Chainlink launches strategic LINK reserve, funded by onchain and offchain revenue

The Block

Aug 07, 2025 22:03:31

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Chainlink announced the launch of its strategic LINK reserve on Thursday, designed to support the long-term growth and sustainability of the decentralized oracle network by accumulating tokens from both offchain enterprise payments and onchain service revenue.

The initiative has already acquired over $1 million in LINK tokens during this early launch phase and is expected to grow gradually as more revenue is converted and added in the coming months, according to a statement.

LINK is trading at $17.96, up around 9.4% on the day, according to The Block's price page.

Chainlink helps connect blockchains to real-world data, other decentralized networks, and enterprise systems, powering tens of trillions in transaction value across DeFi, banking, RWAs, and cross-chain use cases.

Adopted by major institutions and DeFi protocols, including Swift, Euroclear, Mastercard, UBS, and Aave, Chainlink claims to have generated hundreds of millions in revenue, largely from enterprises paying offchain for access to its platform — helping to fuel the reserve going forward.

The reserve uses payment abstraction to convert onchain and offchain revenue into LINK, the project explained, allowing users to pay for Chainlink's services in their preferred format, like stablecoins, which are then programmatically swapped to LINK using decentralized exchanges.

"The launch of the Chainlink Reserve marks a pivotal evolution in Chainlink, establishing a strategic LINK reserve funded using offchain revenue, as well as from onchain service usage," Chainlink co-founder Sergey Nazarov said. "The Chainlink Reserve provides a clear answer to how offchain revenue and large scale institutional adoption of the Chainlink standard will be connected back to the growth, security and sustainability for those standards."

Chainlink does not plan any withdrawals from the reserve for several years, allowing it to grow steadily over time. As demand for Chainlink's services continues to rise, increased adoption is expected to further expand the reserve, the project said.

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