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Chainlink Reserve goes live as project bets on its LINK token as store of value

Chainlink Reserve goes live as project bets on its LINK token as store of value

CryptopolitanCryptopolitan2025/08/07 22:40
By:By Hannah Collymore

Share link:In this post: Chainlink has launched a LINK reserve funded by real on-chain and off-chain revenue. The reserve uses Payment Abstraction to convert various fees into LINK tokens. LINK’s price jumped 6.8% after the announcement, signaling market confidence.

Chainlink has launched a new initiative to strengthen the long-term sustainability of its protocol by establishing the Chainlink Reserve.

The initiative, powered by Chainlink’s Payment Abstraction framework, aims to accumulate LINK from real revenue streams, both off-chain and on-chain, generated by the platform’s expanding network of enterprise integrations and decentralized services.

“We do not expect any withdrawals from the Reserve for multiple years, and thus it is expected to grow over time,” the Chainlink team stated in its official announcement .

Payment Abstraction will power Chainlink Reserve

The Chainlink Reserve is built on Ethereum and acts as a smart contract that stores LINK acquired through various fee-based services offered by the Chainlink ecosystem. This includes both on-chain service usage and off-chain revenue from enterprise partnerships, which Chainlink says already accounts for hundreds of millions of dollars.

The conversion of these revenue streams into LINK is handled by Payment Abstraction , a system that was introduced earlier this year. It enables users to pay in multiple currencies while ensuring that the underlying economics of the Chainlink network still revolve around LINK.

As part of this latest upgrade, Payment Abstraction now supports off-chain payments as well, allowing revenue from traditional enterprises and institutions to be funneled into LINK through automated smart contract logic.

According to Chainlink, more than $1 million worth of LINK has already been deposited into the reserve since the system quietly went live in its early phase.

The reserve is secured with a multi-day timelock to ensure transparency and prevent sudden withdrawals. It has also launched an analytics dashboard tracking its growth publicly at reserve.chain.link . The reserve’s smart contract can also be viewed on Etherscan.

LINK price jumps on long-term demand and enterprise adoption

Sergey Nazarov, Chainlink’s co-founder, has long championed a vision of LINK as an asset with economic value directly tied to the protocol’s usage. The reserve, in his view, is a critical step toward making that reality tangible.

“The launch of the Chainlink Reserve marks a pivotal evolution in Chainlink,” Nazarov said in a press release . He added that, “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 has also confirmed that 50% of the fees generated by its Smart Value Recapture (SVR) services will now be redirected to fund the reserve, further aligning network economics with protocol activity.

The market has responded positively to the launch. LINK surged by over 6.8% in the hours following the announcement. At the time of writing, LINK is trading at around $17.92, closely approaching $18 according to CoinMarketCap data .

Analysts say the reserve offers a clearer framework for LINK’s demand-side economics, adding credibility to its long-term value proposition.

The Chainlink Reserve joins a growing set of economic initiatives, including usage-based fees, subscription models, and build programs that commit startup tokens to Chainlink service providers.

KEY Difference Wire : the secret tool crypto projects use to get guaranteed media coverage

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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