Chainlink has introduced a new on-chain LINK Reserve mechanism, designed to boost demand for its native token by converting payments from enterprise users directly into LINK holdings.
This initiative locks enterprise service fees into the Reserve as LINK tokens, creating ongoing demand rooted in actual protocol usage rather than market speculation. Over $1 million worth of LINK has already been contributed to the Reserve, with expectations that it will remain locked long-term.
The Reserve directly correlates demand for the LINK token with enterprise revenue generation and service payments made at the protocol level. This structure aims to reduce token sell pressure previously associated with fee conversions and foster a more sustainable economic model.
Signaling market optimism following the announcement, the LINK token experienced a significant price surge and notable increase in trading volume.
Further amplifying the Reserve’s impact, 50% of fees generated by staking-verified services will now be allocated directly to the Reserve, strengthening the foundation for utility-driven demand.