We're excited to announce the launch of the Chainlink Reserve, a new upgrade centered on the creation of a strategic onchain reserve of LINK tokens. The Chainlink Reserve is designed to support the long-term growth and sustainability of the Chainlink Network by accumulating LINK tokens using offchain revenue from large enterprises that are adopting the Chainlink standard and from onchain service usage. The Chainlink Reserve is being built up by using Payment Abstraction to convert offchain and onchain revenue into LINK, using a combination of Chainlink services and decentralized exchange infrastructure. Demand for Chainlink has already created hundreds of millions of dollars in revenue, substantially from large enterprises that have paid offchain for access to the Chainlink Platform. With increasing demand from a number of the world’s largest banking and capital markets institutions, this form of paying for the Chainlink standard is expected to grow into the future as the industry grows. The Reserve has already accumulated over $1M worth of LINK from this early stage launch phase, which is expected to gradually grow in the coming months as more revenue is converted into LINK and placed into the Reserve. We do not expect any withdrawals from the Reserve for multiple years and thus it is expected to grow over time. We believe that as the industry demand for Chainlink’s unique capabilities increases, that adoption of Chainlink services will enable the Reserve to grow further. 🧵👇

To make the Chainlink Reserve upgrade even more effective, Payment Abstraction has now officially expanded to support offchain payments for Chainlink and multiple onchain services. Payment Abstraction enables revenue from both onchain service usage, as well as significant offchain revenue from existing and ongoing enterprise integrations, usage and maintenance, to be programmatically converted to LINK (if not already paid in LINK). The Chainlink Reserve is an onchain smart contract on Ethereum that operates as an extension of Payment Abstraction and stores a strategic reserve of LINK.

To support community visibility into the Chainlink Reserve, an analytics dashboard can be found below, while the Reserve contract address can also be viewed on Etherscan.

The following blog dives into: • How the Reserve complements existing Chainlink economic initiatives • How Payment Abstraction powers the Chainlink Reserve • The competitive advantage of the Chainlink Platform and its ability to generate user fees

To learn more about how the Chainlink standard is enabling the world’s largest financial institutions to develop customized, compliant, and future-proof blockchain applications and tokenized assets, dive into the following post: